Question

Abe receives a check from Bea for fixing Bea's car. Bea's bank is Bank B. Abe deposits the check into his bank, Bank A. Select all the statements that correct describe the check-clearing process. Multiple select question. Bank A increases its reserves at the Federal Reserve Bank by more than the amount of the check. Bank A increases Abe's checkable deposits by the amount of the check. Total reserves in the banking system remain unchanged. Total reserves in the banking system increase.

Answer 1

Answer:

Bank A increases its reserves at the Federal Reserve Bank by more than the amount of the check.

Bank A increases Abe's checkable deposits by the amount of the check.

Total reserves in the banking system remain unchanged.

Explanation:

In the case when Abe received the check from bea in order to fixed out the bea car so here Bank A should increased the reserve that should be exceed the check amount

Also it increased the abe checkable deposit via the amount check and the total reserves should remain the same

These should be considered