Resistance and Refusal by Banks

[Keith Alan]

I apologize in advance for posting yet another odd question, but can banks use money that is on deposit in non-interest bearing accounts as reserve currency?

- Update - I believe the answer is no. My thinking is, since the funds are in a non-interest bearing account, and since a person would make his demand upon depositing a check, then the funds in the account would already be lawful money, and no signature card novation is necessary.