When a Check for $10,000 Is Initially Presented to the Fed

When a check for $10,000 is initially presented to the Fed for clearing, the initial impact on the Fed's balance sheet is that

A) cash items in the process of collection falls by $10,000 and deferred availability cash items rises by $10,000.
B) cash items in the process of collection and deferred availability cash items both rise by $10,000.
C) cash items in the process of collection rises by $10,000 and deferred availability cash items falls by $10,000.
D) cash items in the process of collection and deferred availability cash items both fall by $10,000.

Correct Answer:

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