Final answer:
A check clears the bank when the bank withdraws the check amount from the writer's account after verifying sufficient funds are available.
Step-by-step explanation:
A check is said to have cleared the bank when the bank withdraws the amount of the check from the check writer's account. This occurs after the check has been deposited into the recipient's account and the bank has confirmed that sufficient funds are available in the check writer's account to cover the check.
When people deposit money into accounts, such as checking accounts or savings accounts, the move allows them to utilize their funds through various means, including direct withdrawals and writing checks.
Banks consider these deposits liabilities because they owe the deposited funds to their customers, who can demand their money at any time.
The handling of checks is just one component of the banking system that makes it easier for a complex economy to conduct a wide range of transactions, avoiding the need for carrying large amounts of cash, thereby increasing both convenience and security.
Therefore the correct answer is c)the bank withdraws the amount of the check from the check writer's account.