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If the Fed Credits the Payee Bank on a Check

Question 77

Multiple Choice

If the Fed credits the payee bank on a check for $10,000 before it debits the payor bank,


A) the reserves of the payee bank will have risen by $10,000, but the monetary base will have been unaffected.
B) the reserves of the payor bank will have risen by $10,000, but the monetary base will have been unaffected.
C) the monetary base will have fallen by $10,000.
D) the reserves of the payee bank and the monetary base will each have risen by $10,000.

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