If you wrote a check for $37.55 to pay your phone bill and sent it to Verizon,

A) your bank's deposits will go down by $37.55 and its reserves would go up by $37.55.
B) your bank's deposits would go up by $37.55 and its reserves would go down by $37.55.
C) your bank's deposits would go down by $37.55 and its reserves would go down by $37.55.
D) your bank's deposits would go up by $37.55 and its reserves would go up by $37.55.

Question

Claudia Quezada · Accepted Answer

Final Answer : C, Explanation :  When you write a check for $37.55, your bank's deposits decrease by that amount because the money is transferred out of your account. Similarly, the bank's reserves decrease because they must transfer the funds to Verizon's bank to settle the payment.

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