Commercial Banking Practices Consider a Check That Has Been Outstanding

question 31

True/False

Commercial banking practices consider a check that has been outstanding for three months to be a stale check.

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Definitions:

Long-run Supply Curve

A graphical representation showing the relationship between the price of a good and the amount of the good that suppliers are willing to produce, taking into account adjustments in all factors of production.

Decreasing-cost Industry

An industry in which costs per unit decrease as the scale of operation increases, often due to economies of scale.

Downsloping

A characteristic of certain economic graphs, such as the demand curve, indicating that as price decreases, quantity demanded increases.

Purely Competitive Firm

A business that operates in a market where there are many buyers and sellers, and it has no control over the market price of its product.