When a $10 Check Written on the First National Bank

question 138

Multiple Choice

When a $10 check written on the First National Bank of Chicago is deposited in an account at Citibank,then

• A)the liabilities of the First National Bank increase by $10.
• B)the reserves of the First National Bank increase by $ 10.
• C)the liabilities of Citibank increase by $10.
• D)the assets of Citibank fall by $10.

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Definitions:

Quota

A government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a particular time frame.

Supply Price

The minimum price at which a producer is willing to sell a good or service, influenced by production costs and market conditions.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to purchase at each price level.

Quota

A government-imposed trade restriction limiting the number or value of goods that can be imported or exported during a specific time.