Sally writes a $10,000 check to Harry who deposits it in the same bank.

Name: Sally writes a $10,000 check to Harry who deposits it in the same bank.
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Question

Quizplus · Accepted Answer

When Sally writes a check to Harry and he deposits it in the same bank, the bank's total deposits remain unchanged because the money is simply transferred from one account to another within the same bank. Similarly, the reserves of the depository institution remain unchanged because the internal transfer does not affect the bank's total reserves.

Sally Writes a $10,000 Check to Harry Who Deposits It