When a $10 Check Written on the First National Bank

question 138

Multiple Choice

When a $10 check written on the First National Bank of Chicago is deposited in an account at Citibank,then

• A)the liabilities of the First National Bank increase by $10.
• B)the reserves of the First National Bank increase by $ 10.
• C)the liabilities of Citibank increase by $10.
• D)the assets of Citibank fall by $10.

---

Definitions:

Standard Normal Distribution

A probability distribution that has a mean of zero and a standard deviation of one, commonly used in statistics.

Less Than

A comparative term used to indicate that one quantity or number is smaller than another.

Z-scores

A numerical indicator showing how a specific value compares to the average of a set of numbers, expressed by how many standard deviations it is from the average.

Standard Normal Distribution

A normal distribution with a mean of 0 and a standard deviation of 1, used as a basis for comparison in statistical analysis.