A Customer of Bank a Writes a $20,000 Check for a New

question 65

Multiple Choice

A customer of Bank A writes a $20,000 check for a new car, which the car dealer deposits in his bank, Bank B.Which of the following statements pertaining to this transaction is most true?

• A)Banks A's reserves will decrease by the required reserve rate times $20,000 and Banks B's reserves will increase by (1 - required reserve rate) times $20,000
• B)Bank A's reserves decrease by $20,000 and Bank B's reserves increase by $20,000
• C)Neither Bank A's nor B's reserves will change
• D)Bank B's reserves will decrease and Bank A's reserves will increase by $20,000

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Definitions:

Noncompliance

The failure or refusal to adhere to prescribed treatment plans, medications, or therapeutic instructions.

Ethnic Group

A community or population made up of people who share a common cultural background, heritage, language, or lineage.

Cultural Beliefs

The values, norms, and practices that are shared among members of a group or society, influencing behaviors and interpretations of events.

Puerto Rico

A Caribbean island and unincorporated territory of the United States with a rich culture, tropical climate, and diverse landscape.