If You Deposit a $50 Check in the Bank, Before

question 57

Multiple Choice

If you deposit a $50 check in the bank, before the check has cleared the change in your bank's balance sheet will be a

• A)$50 increase in reserves and a $50 increase in checkable deposits.
• B)$50 increase in cash items in the process of collection and a $50 increase in reserves.
• C)$50 increase in cash items in the process of collection and a $50 increase in checkable deposits.
• D)$50 increase in cash and a $50 increase in checkable deposits.

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Definitions:

Arrest Warrant

A written order, based on probable cause and typically issued by a judge, commanding that the person named on the warrant be arrested by the police.

Probable Cause

A reasonable basis for believing that a crime may have been committed, which is necessary for issuing warrants or making arrests.

Judge or Magistrate

Officials with the authority to conduct court proceedings, make legal decisions, and rule on legal matters.

Grand Jury

A legal body empowered to conduct official proceedings to investigate potential criminal conduct and determine whether criminal charges should be brought.