The Amount of Deposits in Transit Is Included on the Bank

question 75

Multiple Choice

The amount of deposits in transit is included on the bank statement as a(n) :

• A) deduction from the cash balance per books.
• B) deduction from the cash balance per bank.
• C) addition to the cash balance per bank.
• D) addition to the cash balance per books.

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Definitions:

Adaptive Expectations

An economic theory suggesting that people adjust their future expectations based on past experiences and trends.

Government Policy

The actions taken by a government to achieve its objectives in various sectors like economy, social welfare, and public services.

Rational Expectations

An economic theory suggesting that individuals make predictions about future events using all available information, thus their expectations are on average correct.

Rational Expectations

The hypothesis in economics that assumes individuals form forecasts of future events based on all available information in an unbiased and rational manner.