Abe receives a check from Bea for fixing Bea's care. Bea's bank in Bank B. Abe deposits the check into his bank, Bank B. These statements are part of the check clearing processsAnswer: -Bank A increases it reserves at the Federal Reserve Bank by the amount of the check
-Bank B reduce Bea's check-able deposits by the amount of the check
-Bank A increases Abe's check-able deposits by the amount of the check
-Bank B decrease its reserves at the Federal Reserve bank by the amount of the check
-Total reserves in the banking system remain unchanged
