When an Individual Withdraws Funds from a Checking Account The

question 19

Multiple Choice

When an individual withdraws funds from a checking account the:

• A) bank's balance sheet shrinks but the size of the Fed's balance sheet is not affected.
• B) bank's balance sheet shrinks and so does the Fed's balance sheet.
• C) bank's balance sheet shrinks but the size of the Fed's balance sheet increases.
• D) size of the bank's balance sheet stays the same but the size of the Fed's balance sheet shrinks.

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Definitions:

Total Cash Collected

The sum of all cash received by a company during a specified period, including sales, accounts receivable collections, and other cash receipts.

Collections

The process of recovering the amounts owed to a business by its debtors or the action of receiving payments.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Raw Materials Inventory

Stocks of unprocessed goods or materials held by a company to be used in production.