In Addition to the Clearing of Checks Through Federal Reserve

question 75

Multiple Choice

In addition to the clearing of checks through Federal Reserve Banks, the Fed accommodates check clearing through

• A) check clearinghouses it sponsors in major cities.
• B) its branches and a group of regional check-processing centers.
• C) electronic transfers of funds.
• D) the United Postal Service.

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Definitions:

Alternative Investments

Assets that do not fall into the conventional investment categories such as stocks, bonds, and cash, examples include real estate, commodities, and hedge funds.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Differential Income

The difference in income between two alternatives, used in decision-making processes to determine the best option.

Alternative Use

Refers to the potential other uses or applications of an asset or resource outside its current employment.