When a Payor Bank Gets an Item Payable from a Customer's

question 54

Multiple Choice

When a payor bank gets an item payable from a customer's account with insufficient funds, the bank may:

• A) pay the item and charge it to the customer's account even though an overdraft is created.
• B) dishonor the item and return it.
• C) Either may happen.
• D) Neither is allowed.

Identify and describe the role of automatic stabilizers in the economy.

Comprehend the perspectives of classical and Keynesian economists on the economy.

Analyze the impact of fiscal policy on economic stability.

Explain the concept of laissez-faire and its implications on economic policy.

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Definitions:

Capacity Decisions

Refers to determinations made by a company about the amount of production resources available, affecting its ability to meet demand.

Technological Concerns

Issues related to the implementation, impact, and management of technology within an organization or society.

Demand Forecasts

Projections of a company’s sales for each time period in the planning horizon.

Process Cycle Time

The total time from the beginning to the end of a process, including processing time and any time the process is inactive or waiting.