If You Deposit a $50 Check in the Bank,the Immediate

question 127

Multiple Choice

If you deposit a $50 check in the bank,the immediate impact on your bank's balance sheet will be a

• A) $50 increase in reserves and a $50 increase in checkable deposits.
• B) $50 decrease in reserves and a $50 increase in checkable deposits.
• C) $50 increase in reserves and a $50 decrease in checkable deposits.
• D) $50 decrease in liabilities and a $50 increase in checkable deposits.

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Definitions:

Medicare Portion

The Medicare portion is the share of payroll taxes collected from employers and employees that is allocated to fund the Medicare program.

Social Security Portion

The part of payroll taxes paid by employers and employees that goes towards funding the Social Security program.

Net Pay

The amount of an employee's earnings that remains after deductions, such as taxes and retirement contributions, have been applied.

FICA Social Security Tax

A United States federal tax required to be withheld from an employee's paycheck to fund the Social Security program, which provides benefits for retirees, the disabled, and children of deceased workers.