Which of the following happens when Henry Hyde pays for the bond by writing a check from his checking account at the Jekyll Bank?
A) Jekyll Bank's checkable deposits decreases by $50,000 and its reserves decreases by $45,000.
B) Jekyll Bank's checkable deposits decreases by $45,000 and its reserves decreases by $50,000.
C) Jekyll Bank's checkable deposits and reserves decrease by $50,000 each.
D) Jekyll Bank's checkable deposits and reserves increase by $45,000 each.
Ans: C) Jekyll Bank's checkable deposits and reserves decrease by $50,000 each.
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