When Checks Are Exchanged Between Banks, the Fed Oversees the Banks

question 170

Multiple Choice

When checks are exchanged between banks, the Fed oversees the banks to ensure the appropriate funds have been transferred. This is known as

• A) check kiting.
• B) check clearing.
• C) check floating.
• D) check balancing.

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Definitions:

Spacing Effect

A phenomenon in which recall of material that is presented repeatedly is superior when the presentations are some time apart rather than immediately following one another.

Context Effects

The influence of environmental factors on one's perception, cognition, or behavior.

Explicit Memory

Memory that involves conscious recollection of previous experiences, facts, or information, such as remembering names or historical dates.

Implicit Memory

Memory that is not deliberate or conscious but exhibits evidence of prior experience.