When Processing a Check, Sterling Bank Encodes Information, Such as the Amount

question 45

Multiple Choice

When processing a check, Sterling Bank encodes information, such as the amount of the check, on the item. Sterling thereby warrants to any subsequent bank or payor​

• A) ​the item has been returned to the drawer.
• B) ​nothing.
• C) ​the check has been processed manually.
• D) ​the encoded information is correct.

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Definitions:

Payroll Tax

A tax on the earnings an employer pays to an employee.

Burden Of The Tax

The burden of the tax refers to the impact of a tax on the economic welfare of stakeholders, indicating who ultimately bears the cost of the tax.

Elasticity Of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, quantitatively measured as the percentage change in quantity demanded relative to a percentage change in price.

Elasticity Of Supply

A measure of how much the quantity supplied of a good changes in response to a change in its price.