Suppose a Substantial Snowstorm in the Northeast Slows Down the Check-Clearing

question 40

Multiple Choice

Suppose a substantial snowstorm in the Northeast slows down the check-clearing process. The likely result will be

• A)the monetary base will increase.
• B)the monetary base will decrease.
• C)deferred availability cash items will increase relative to cash items in the process of collection.
• D)bank reserves will fall.

---

Definitions:

Direct Payments

Cash subsidies paid to farmers based on past production levels; a permanent transfer payment unaffected by current crop prices and current production.

Food For Peace Program

A United States government initiative aimed at providing food aid to foreign countries to assist in hunger relief and to enhance food security.

Surplus U.S. Farm Products

Excess agricultural products in the United States that exceed domestic demand, often leading to exports or storage.

Developing Countries

Nations with lower levels of industrialization, a lower Human Development Index (HDI) than developed countries, and generally, a lower standard of living, often characterized by higher poverty rates and underdeveloped infrastructure.