If Guy and Laraine Both Have Chequing Accounts at the Same

If Guy and Laraine both have chequing accounts at the same bank and Guy writes a cheque for $1,000,payable to Laraine,what will happen to the bank's accounts?

A) They will not be affected.
B) Assets and liabilities will both decrease by $1,000.
C) Liabilities will decline and the bank's equity will increase by $1,000.
D) Reserves and demand deposits will both decrease by $1,000.
E) Demand deposits will increase and loans to customers will decrease by $1,000.