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Question
When an individual withdraws funds from a checking account the:A. bank's balance sheet shrinks but the size of the Fed's balance sheet is not affected.
B. bank's balance sheet shrinks and so does the Fed's balance sheet.
C. bank's balance sheet shrinks but the size of the Fed's balance sheet increases.
D. size of the bank's balance sheet stays the same but the size of the Fed's balance sheet shrinks.
Answer
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