When a Bank Accepts a Checkable Deposit from a Customer

question 20

Multiple Choice

When a bank accepts a checkable deposit from a customer, its deposits will increase and its excess reserves will

• A)increase by the same amount as deposits.
• B)increase by less than the deposits.
• C)increase by more than the deposits.
• D)decrease.Blooms: Understand

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Definitions:

Service Sector

The sector of the economy that provides intangible goods and services to consumers, including retail, healthcare, and financial services.

Real Wages

Wages adjusted for inflation, reflecting the actual buying power of income in the economy.

Manufacturing

The industrial process of converting raw materials into finished products on a large scale using labor, machinery, and chemical processing.

Employment

Refers to the condition of having paid work or the process of hiring someone for a job.