A check for $10,000 drawn on Bank A and deposited at Bank B will increase the excess reserves in Bank B by
$10,000.

Name: A check for $10,000 drawn on Bank A and deposited at Bank B will increase the excess reserves in Bank B by $10,000.
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Question

Quizplus · Accepted Answer

When a check is deposited, Bank B's reserves increase by $10,000, but its liabilities also increase by the same amount, so excess reserves do not increase by $10,000.

A Check for $10,000 Drawn on Bank a and Deposited