Suppose Your Payroll Cheque Is Directly Deposited to Your Chequing

question 162

Multiple Choice

Suppose your payroll cheque is directly deposited to your chequing account. Everything else held constant, total reserves in the banking system ________ and the monetary base ________.

• A) remain unchanged; remains unchanged
• B) remain unchanged; increases
• C) decrease; increases
• D) decrease; decreases

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Definitions:

Reasonable Cost

A standard in pricing or expenditure that is fair, proper, and not excessive under the circumstances.

Exculpatory Clause

A provision in a contract that absolves one party from liability for their own negligence or wrongdoing.

Liability

Obligation or liability for one's actions or debts.

Tortious Conduct

Actions carried out by an individual or entity that cause harm or loss to another, leading to civil legal liability.