When Jane Brown Writes a $100 Check to Her Nephew

question 141

Multiple Choice

When Jane Brown writes a $100 check to her nephew and he cashes the check,Ms. Brown's bank ________ assets of $100 and ________ liabilities of $100.

• A)gains;gains
• B)gains;loses
• C)loses;gains
• D)loses;loses

---

Definitions:

Investment

The act of allocating funds into ventures with the intention of gaining financial returns or tangible outcomes.

Compounded Quarterly

Interest on an investment or loan that is calculated four times a year, adding each interest payment to the principal for future interest calculations.

Maturity Value

The amount payable to an investor at the end of a fixed-term investment including the principal and the interest.

Compounded Annually

Compounding annually is a method where interest is added to the principal sum at the end of each year, impacting the total interest earned or paid.