When a check is drawn against bank A and deposited in another bank, the ﬁrst bank loses reserves as the check
is cleared. Yet the check collection involves no loss of reserves by the banking system. Explain what signiﬁcance
this has for the lending ability of the system as a whole.

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The Answer of When a check is drawn against bank A and deposited in another bank, the ﬁrst bank loses reserves as the check
is cleared. Yet the check collection involves no loss of reserves by the banking system. Explain what signiﬁcance
this has for the lending ability of the system as a whole.

When a Check Is Drawn Against Bank a and Deposited