If a Check Was Written on Bank a for $100

question 422

Multiple Choice

If a check was written on Bank A for $100 and Bank B presented the check to Bank A for payment, what will happen to the required reserves for each respective bank after payment is made?

• A) Bank A's required reserves increase; Bank B's decrease.
• B) Bank B's required reserves increase; Bank A's decrease.
• C) Both banks will see an increase in their required reserves.
• D) Both banks will see a decrease in their required reserves.

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Definitions:

Cementum

A specialized bone-like substance covering the root of a tooth, anchoring it to the jawbone via the periodontal ligament.

Accessory Organ

An organ that supports the function of major organs and systems, such as the pancreas in digestion.

Muscularis Externa

The layer of muscle in the gastrointestinal tract wall that is responsible for gut movement through peristalsis.

Serosa

A smooth membrane consisting of a thin layer of cells that secrete serous fluid, lining the outer surface of internal organs and body cavities.