HomeworkLib
Question

Question 22 3.33 pts When a check is drawn and cleared, the bank against which the...

Question 22 3.33 pts When a check is drawn and cleared, the bank against which the check is cleared acquires reserves and deposits equal to the amount of the check. bank receiving the check loses reserves and deposits equal to the amount of the check. reserves and deposits of both the bank against which the check is cleared and the bank receiving the check are unchanged by this transaction. bank against which the check is cleared loses reserves and deposits equal to the amount of the check.

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

When you go to your bank for depositing the check that is drawn for some other bank, money from that bank in the form of reduction in deposits and reserves travels to your account in your bank. This implies that your bank will receive an amount that raises its deposits and reserves while the bank against which the check is cleared loses reserves and deposits equal to the amount of the check.

0 0
Add a comment
Know the answer?
Add Answer to:
Question 22 3.33 pts When a check is drawn and cleared, the bank against which the...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1. The goldsmith's ability to create money was based on the fact that: a) withdrawals of...

    1. The goldsmith's ability to create money was based on the fact that: a) withdrawals of gold tended to exceed deposits of gold in any given time period. b) consumers and merchants preferred to use gold for transactions, rather than paper money. c) the goldsmith was required to keep 100 percent gold reserves. d) deposits of gold tended to exceed withdrawals of gold in any given time period. 2. In a fractional reserve banking system: a) deposit insurance increases the...

  • Question #14 PREPARE A BANK RECONCILIATION BANK STATEMENT COMPANY'S RECORDS CHECKS CLEARED THE BANK: CHECKS WRITTEN...

    Question #14 PREPARE A BANK RECONCILIATION BANK STATEMENT COMPANY'S RECORDS CHECKS CLEARED THE BANK: CHECKS WRITTEN PER COMPANY'S -CHECK # AMOUNT CASH DISBURSEMENT JOURNAL -1001 100-Check # AMOUNT -1002 100 75 -1001 -1003 -1002 75 50 -1005 (To pay utilities bill) 10 250 -1003 -1006 10 -1004 1,000 250 1,475 -1005 900 DEPOSITS: -1006 2,500 1007 240 -1/7/2018 -1008 50 - 1/14/2018 1,000 1,635 500 1/23/2018 4,000 DEPOSITS PER COMPANY'S CASH RECEIPTS JOURNAL 2,500 ·BANK FEE $30.00 1,000 1/14 500...

  • Suppose Ginger deposits ​$6 comma 000 in cash into her checking account at the Bank of...

    Suppose Ginger deposits ​$6 comma 000 in cash into her checking account at the Bank of Skidoo. Show this transaction in a​ T-account for the Bank of Skidoo. ​(Enter your responses as integers.​) Bank of Skidoo Assets Liabilities Reserves ​$ nothing Deposits ​$ nothing The Bank of Skidoo has no excess reserves and is subject to a 5 percent required reserve ratio. Assume the Bank of Skidoo makes the maximum loan possible from​ Ginger's deposit to Thurston. Show this transaction...

  • Question 1 (1 point) The amount of reserves that a commercial bank is required to hold...

    Question 1 (1 point) The amount of reserves that a commercial bank is required to hold is equal to: Question 1 options: the amount of its checkable deposits. the sum of its checkable deposits and time deposits. its checkable deposits multiplied by the reserve requirement. its checkable deposits divided by its total assets. Save Question 2 (1 point) Answer the question on the basis of the following information for the Moolah Bank. Refer to the information and assume that Moolah...

  • Question 1 10 pts When a bank seeks to expand (new branch, merge with another bank...

    Question 1 10 pts When a bank seeks to expand (new branch, merge with another bank etc.) the following needs to be done before proceeding: obtain regulatory approval decide how many investors to seek seek a permit from the local city government decide who will be the CEO at the new branch Question 2 10 pts One of the reasons for bank regulation is to ensure equal opportunity and fairness in the public's access to credit and other financial services....

  • 1. Suppose you withdraw $500 from your checking account at your bank, which has a required...

    1. Suppose you withdraw $500 from your checking account at your bank, which has a required reserve ratio of 30%. Initially, as a result of your this transaction, the size of M1 will.... (Increase/decrease/remain unchanged) . Before any further actions by your bank, the reserves in your bank..... Increase/decrease/remain unchanged) by... while the excess reserves of your bank ..... (Increase/decrease/remain unchanged) by .... 2. Suppose that the general public decided to decrease its holdings of currency and increase its checking...

  • I need help answering question 5 on page 322 of the macroeconomic 21st edition assets (1)...

    I need help answering question 5 on page 322 of the macroeconomic 21st edition assets (1) (2)    Liabilities and net worth (1) (2') Reserves $22,000    Securities $38,000 Checkable deposits= $100,000 Loans 40,000 The following balance sheet is for Big Buck Bank. The reserve ratio is for 20 percent. a)what is the maximum amount of new loans that the bank can make? b) by how much has the supply of money changed? c)how much will the balance sheets appear...

  • Exercise 5-11 Marin Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the...

    Exercise 5-11 Marin Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the following information $ 100 Balance, August 1 August deposits Checks cleared in August Bank credit memorandum: Interest eamed $18,685 Bank debit memorandum: 71,285 Safety deposit box fee 68,603 Service charge Balance, August 31 120 125 21,262 A summary of the Cash account for August shows the following: balance, August 1, $18,985; receipts $74,285; disbursements $73,495; and balance, August 31, $19,775. Analysis reveals that the...

  • Question 3 0.2 pts Match how to treat the item for a bank reconciliation Bank service...

    Question 3 0.2 pts Match how to treat the item for a bank reconciliation Bank service fee Interest earned on bank account [Choose balance AFTER the bank reconciliation add to cash ledger balance BEFORE the bank reconciliation add to bank subtract from bank subtract from cash ledger Ending balance on the bank statement [ Choose Question 4 0.2 pts Which statement is true regarding cash sales? We always recognize the sale at the agreed upon transaction price regardless of how...

  • D Question 26 2 pts The Consulting Company had the following information related to its bank...

    D Question 26 2 pts The Consulting Company had the following information related to its bank reconciliation at March 31 2020 1. Balance per books as of March 31, 2020: 2 Balance per bank as of March 31, 2020: 3. Deposits in transit at March 31, 2020: 4. Debit memo for the Consulting Company renting a lockbox at the bank This was shown on the bank statement; however, it had not been recorded in the Consulting Company's general ledger as...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT