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When a $10 Cheque Written on the First National Bank

Question 28

Multiple Choice

When a $10 cheque written on the First National Bank is deposited in an account at CIBC, then ________.


A) the reserves of the First National Bank decrease by $10
B) the reserves of the First National Bank increase by $10
C) the reserves of CIBC decrease by $10
D) the assets of CIBC decrease by $10

Correct Answer:

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