When a Customer Demands Additional Currency and Cashes a Check

question 71

Multiple Choice

When a customer demands additional currency and cashes a check for $500, all of the following occur except

• A) the deposits of the bank are reduced $500.
• B) required reserves are reduced.
• C) Federal Reserves' notes decrease.
• D) additional reserves must be acquired if the bank has no excess reserves.

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Definitions:

Incentive Systems

Arrangements used by organizations to motivate and reward employees for achieving specific performance targets.

Industrial Buyers

Individuals or organizations that purchase goods or services for industrial use, manufacturing, or for resale to other consumers.

Productivity Measurement

The process of quantifying the efficiency and effectiveness of production.

Evaluation System

A structured process used by organizations to assess, review, and enhance performance and effectiveness, typically of employees or processes.