Suppose a cheque is cleared against Bank A after being deposited at Bank B.How are the banks' liabilities affected?
A) Bank A's liabilities increase, and Bank B's liabilities increase.
B) Bank A's liabilities decrease, and Bank B's liabilities decrease.
C) Bank A's liabilities increase, and Bank B's liabilities decrease.
D) Bank A's liabilities decrease, and Bank B's liabilities increase.
Correct Answer:
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