Sally Writes a $10,000 Check to Harry Who Deposits It

question 122

Multiple Choice

Sally writes a $10,000 check to Harry who deposits it in the same bank.

• A)Both deposits and reserves of depository institutions increase.
• B)Both deposits and reserves of depository institutions remain unchanged.
• C)Reserves at depository institutions increase,but deposits remain the same.
• D)Both deposits and reserves at depository institutions decrease.
• E)Reserves at depository institutions decrease,but deposits remain the samE.

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Definitions:

General Partners

Individuals who take part in the management and are personally liable for the debts of a partnership.

Limited Partnership

A partnership arrangement with two types of partners: general partners, who manage the business and are personally liable for its debts, and limited partners, whose liability is limited to their investment in the partnership.

Fraud Suits

Legal actions initiated due to accusations of deceit or intentional misinformation to gain a dishonest advantage.

Greenhouse Gases

Gases in Earth's atmosphere that trap heat, contributing to global warming and climate change.