a $10 check written on the First National Bank of Chicago is deposited in an account at Citibank, the the assets of Citibank fall by $10. the liabilities of the First National Bank increase by $10. the reserves of the First National Bank increase by $ 10. the liabilities of Citibank increase by $10

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter19: Money Creation
Section: Chapter Questions
Problem 19SQ
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When a $10 check written on the First National Bank of Chicago is deposited in an account at Citibank, then
A. the assets of Citibank fall by $10.
B. the liabilities of the First National Bank increase by $10.
C. the reserves of the First National Bank increase by $ 10.
D. the liabilities of Citibank increase by $10.
Transcribed Image Text:When a $10 check written on the First National Bank of Chicago is deposited in an account at Citibank, then A. the assets of Citibank fall by $10. B. the liabilities of the First National Bank increase by $10. C. the reserves of the First National Bank increase by $ 10. D. the liabilities of Citibank increase by $10.
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