You receive a check drawn on another bank and deposit it into your checking account. Even though

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You receive a check drawn on another bank and deposit it into your checking account. Even though this is a “demand deposit” the funds are not immediately available for your use. Why? Would your answer change if the check is drawn on the account of another customer of your own bank?

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Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

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