Paul, a Customer of a Bank, Writes a Check for $50,000

question 2

Multiple Choice

Paul, a customer of a bank, writes a check for $50,000 to a customer of another bank.Which of the following changes will be reflected in Paul's bank's balance sheet?

• A)Reserves decrease by $50,000.
• B)Transactions deposits increase by $50,000.
• C)Nontransactions deposits increase by $50,000.
• D)Borrowings increase by $50,000.

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Definitions:

Goal Commitment

The determination and dedication an individual shows towards achieving their set objectives.

Feedback

Information provided about the result of an action or process, used as a basis for improvement.

Cognitive Reevaluation

Involves changing the way one thinks about a situation in order to alter its emotional impact.

Perceived Inequity

A feeling of unfairness experienced when individuals perceive that their ratio of efforts to rewards does not align with those of others.