Paul, a customer of a bank, writes a check for $50,000 to a customer of another bank.Which of the following changes will be reflected in Paul's bank's balance sheet?

Question

Quizplus · Accepted Answer

When Paul writes a check for $50,000, his bank's reserves decrease by that amount because the bank must transfer funds to the other bank to cover the check. This reflects a decrease in the bank's assets.

Paul, a Customer of a Bank, Writes a Check for $50,000