When a Bank Has a Cheque Drawn and Cleared Against

question 101

Multiple Choice

When a bank has a cheque drawn and cleared against it:

• A)excess reserves in the banking system decline.
• B)the nation's total money supply falls.
• C)the bank's balance sheet does not change.
• D)the amount of desired reserves the bank has will fall.

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Definitions:

Dissonance

A psychological conflict resulting from incongruent beliefs and attitudes held simultaneously, often leading to an alteration in one of the attitudes to reduce the conflict.

Align

To adjust or arrange something in a straight line, or to bring into cooperation or agreement with a particular group, standard, or belief.

Foot-in-the-door Technique

A persuasive tactic involving getting a person to agree to a small request as a precursor to making them more likely to agree to a larger request later.

Small Request

A minor or insignificant petition or appeal made to another individual, often as a precursor to asking for a larger favor in compliance theories.