If the Fed Credits the Payee Bank on a Check

question 77

Multiple Choice

If the Fed credits the payee bank on a check for $10,000 before it debits the payor bank,

• A)the reserves of the payee bank will have risen by $10,000, but the monetary base will have been unaffected.
• B)the reserves of the payor bank will have risen by $10,000, but the monetary base will have been unaffected.
• C)the monetary base will have fallen by $10,000.
• D)the reserves of the payee bank and the monetary base will each have risen by $10,000.

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Definitions:

Instrumental Activity

Tasks that allow an individual to live independently, such as managing finances, handling transportation, or performing household chores.

Daily Living

The activities or tasks that an individual performs every day to maintain their personal and domestic life.

Managing Money

The process of budgeting, saving, investing, spending, or otherwise overseeing the capital usage of an individual or group.

Life Expectancy

The average period that an individual is expected to live, based on demographic factors and health conditions.