When a check is cleared against a bank, the bank will lose
A) cash and securities.
B) checkable deposits and reserves.
C) reserves and capital stock.
D) loans and demand deposits.

Question

Quizplus · Accepted Answer

When a check is cleared against a bank, the bank will lose checkable deposits and reserves as it has to pay out the money to the recipient of the check. The other options mentioned in the choices are not directly related to the clearing of a check.

When a Check Is Cleared Against a Bank, the Bank