Federal Reserve Board Guidelines for Checks

question 35

Multiple Choice

Federal Reserve Board guidelines for checks:

• A) require indorsements to be in blue or black ink.
• B) must be followed or the check will not go through the banking system.
• C) require bank indorsements to be made within 2 inches of the left edge of the back of the check.
• D) Require indorsements to be in blue or black ink and that  bank indorsements to be made within 2 inches of the left edge of the back of the check.

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Definitions:

Manufacturing Firms

Companies engaged in the industrial process of converting raw materials into finished products through human labor and machinery.

Disposable Income

The disposable income households have for expenditures and savings, post-income taxation.

C + I

A formula component in macroeconomics representing total private consumption (C) plus total private investment (I).

MPS

The marginal propensity to save, which is the fraction of an additional unit of income that is saved rather than spent.