If a Bank Receives More Checks Deposited to the Accounts

question 103

True/False

If a bank receives more checks deposited to the accounts it holds than checks drawn against its deposit accounts,the bank's legal reserves will tend to increase.

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Definitions:

Phillips Curve

An economic concept that illustrates an inverse relationship between the rate of unemployment and the rate of inflation in an economy.

Natural Rate

Refers to the level of economic output or unemployment that is consistent with stable inflation, not influenced by short-term fluctuations.

Money Supply Growth

An increase in the total amount of money in circulation or in the economy, which can affect inflation rates, interest rates, and economic growth.

Phillips Curve

A concept in economics illustrating an inverse relationship between the rate of unemployment and the rate of inflation within an economy.