Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a check is written for the full amount of a derivative deposit created by a bank loan and then is sent to a bank

If a check is written for the full amount of a derivative deposit created by a bank loan and then is sent to a bank in another city for deposit

A. the lending bank would lose all of its excess reserves.

B. the lending bank would still have reserves to lend.

C. the full amount would be added to the receiving bank's excess reserves.

D. the receiving bank would lose excess reserves.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting

Authors: Kin Lo, George Fisher

3rd Edition Vol. 1

133865940, 133865943, 978-7300071374

More Books

Students also viewed these Finance questions

Question

In words, what is the mass of 1 mole of any molecule?

Answered: 1 week ago

Question

How many applicants are you interviewing?

Answered: 1 week ago

Question

Explain the need for and importance of co-ordination?

Answered: 1 week ago

Question

Explain the contribution of Peter F. Drucker to Management .

Answered: 1 week ago

Question

What is meant by organisational theory ?

Answered: 1 week ago

Question

What is meant by decentralisation of authority ?

Answered: 1 week ago