Mr.Smith now spends the exact amount of money he borrowed to buy equipment from Ms.Jones,paying for it with a check drawn on his account at bank A.Ms.Jones deposits the check in her account at bank B.Once the checks have cleared,compared to its position just after the loan to Mr.Smith,bank A now has had its reserves decreased by

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The Answer of Mr.Smith now spends the exact amount of money he borrowed to buy equipment from Ms.Jones,paying for it with a check drawn on his account at bank A.Ms.Jones deposits the check in her account at bank B.Once the checks have cleared,compared to its position just after the loan to Mr.Smith,bank A now has had its reserves decreased by

MrSmith Now Spends the Exact Amount of Money He Borrowed