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Question
Paul, a customer of a bank, writes a check for $50,000 to a customer of another bank. Which of the following changes will be reflected in Paul's bank's balance sheet?a. Reserves decrease by $50,000.
b. Transactions deposits increase by $50,000.
c. Nontransactions deposits increase by $50,000.
d. Borrowings increase by $50,000.
Answer
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