Question

If you deposit a $50 check in the bank, the immediate impact on your bank's balance...

If you deposit a $50 check in the bank, the immediate impact on your bank's balance sheet will be a

$50 decrease in reserves and a $50 increase in checkable deposits.

$50 increase in reserves and a $50 increase in checkable deposits.

$50 increase in reserves and a $50 decrease in checkable deposits.

$50 decrease in liabilities and a $50 increase in checkable deposits.

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option 2

$50 increase in reserves and a $50 increase in checkable deposit

The deposit is added to the checkable deposits on the liability side and also added to reserves on the asset side.

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