When a Check Is Cleared Against Bank a After Being

question 72

Multiple Choice

When a check is cleared against Bank A after being deposited at Bank B,_____.

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

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Definitions:

Production Possibilities Frontier

A curve that illustrates the maximum feasible amount of two goods that can be produced with given resources and technology.

Opportunity Cost

The financial setback of forgoing the next highly regarded alternative when determining a course of action.

Technological Advance

Improvements and innovations in technology that increase productivity, efficiency, and economic output.

Machine-making Industry

A sector of the economy focused on the manufacturing and maintenance of machines and mechanical equipment.