Fact Pattern 25-2 (Questions 27-28 Apply)

question 46

Multiple Choice

Fact Pattern 25-2 (Questions 27-28 apply)
Tom draws a check,on his account in State Bank in New York,payable to Digital Media,Inc.,in San Francisco.Digital deposits the check in its ac?count at First National Bank.
-Refer to Fact Pattern 25-2.Tom's bank is

• A)the cashing bank.
• B)the depositary bank.
• C)the intermediary bank.
• D)the payor bank.

---

Definitions:

Poverty Line

The minimum level of income deemed necessary to achieve an adequate standard of living in a given country.

Invisible Hand

A metaphor introduced by Adam Smith to describe how an individual's pursuit of self-interest in a free-market economy inadvertently benefits society as a whole.

Allocation of Resources

The process of allocating resources among competing uses or projects in order to achieve desired outcomes.

Poverty Rate

The percentage of the population whose family income falls below an absolute level called the poverty line.