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:

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.

Ratio

A quantitative relationship between two numbers, showing how many times one value contains or is contained within the other.

Smallest Term

The term in a mathematical expression or equation that has the lowest degree, or in a sequence or series, the term with the least value.

Express

To convey a thought or feeling in words or by gestures and conduct.