When a $10 Check Written on the First National Bank

question 135

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

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Definitions:

High Freight Rates

The increased costs associated with transporting goods, often due to factors like fuel prices, demand, regulatory fees, and infrastructure issues, impacting economies and consumers.

Excessive Interest Rates

Interest rates that are significantly higher than what would be considered reasonable or fair, often associated with predatory lending practices.

Low Tariffs

Refers to relatively minimal taxes or duties placed on the import or export of goods which can encourage free trade and lower the cost of imported goods.