Suppose You Bank at Bank a and You Write a Check

question 38

Multiple Choice

Suppose you bank at Bank A and you write a check to your friend,who banks at Bank B.After the check clears,_____.

• A)both Bank A's and Bank B's assets increase
• B)both Bank A's and Bank B's assets decrease
• C)Bank A's assets increase and Bank B's assets decrease
• D)Bank A's assets decrease and Bank B's assets increase
• E)there is an increase in the Federal Reserve's assets

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Definitions:

Assets

Resources owned by a company that have economic value and can provide future benefits.

Future Benefits

The projected economic advantages to be received from an investment, often used in evaluating the potential return from capital projects or investments.

Net Income

The amount of earnings remaining after all expenses, including taxes and costs, have been subtracted from total revenue.

Revenues

The total amount of money received by a company for goods sold or services provided during a specific period, before any deductions.