Whenever somebody deposits a check from bank A into a checkable deposit at bank B,bank A's reserves ________ and bank B's reserves ________.
A)increase;decrease
B)increase;increase
C)decrease;decrease
D)decrease;increase
E)do not change;do not change

Question

Quizplus · Accepted Answer

When a check is deposited from bank A into a checkable deposit at bank B, bank A's reserves decrease as they lose the funds from the check while bank B's reserves increase as they gain the funds from the check.

Whenever Somebody Deposits a Check from Bank a into a Checkable