Tony Gives Sonora a Check for $500

question 32

Multiple Choice

Tony gives Sonora a check for $500. Sonora deposits it in her local bank, which transfers the check to the Federal Reserve Bank in Chicago, which transfers it to Tony's bank in Wisconsin. What type of bank is the Federal Reserve Bank in this situation?

• A) A collecting bank or an intermediary bank
• B) A provisional bank
• C) A depository bank
• D) A collecting bank, but not an intermediary bank
• E) A payor bank

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Definitions:

Median

When values in a dataset are sorted from least to greatest or the opposite, the median is the value that sits in the center.

Set of Data

A collection of related information or variables, typically numeric, organized for analysis.

Mean

A statistical measure that represents the average value of a set of numbers.

Set of Data

A collection of data points or values that have been gathered to provide information for analysis.