A Check Involves Three Parties

question 48

Multiple Choice

A check involves three parties.The bank in which the drawer has money on deposit is called the

• A) drawer.
• B) drawee.
• C) payee.
• D) endorser.

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Definitions:

M1

A measure of the money supply that includes all physical currency, as well as demand deposits, checking accounts, and other liquid assets easily convertible to cash.

Small Denomination Time Deposits

Time-bound deposit accounts in banks with relatively small deposit requirements, offering fixed interest rates for the duration of the deposit term.

Average Price Level

An economic indicator that shows the overall level of prices for goods and services in an economy over a period.

Value of Money

The purchasing power of money, indicating the amount of goods or services that one unit of money can buy, subject to change due to inflation or deflation.