When a Check Is Cleared Against Bank a After Being

question 96

Multiple Choice

When a check is cleared against Bank A after being deposited at Bank B,

• A)both Bank A's and Bank B's liabilities increase
• B)both Bank A's and Bank B's liabilities decrease
• C)Bank A's liabilities increase and Bank B's liabilities decrease
• D)Bank A's liabilities decrease and Bank B's liabilities increase
• E)there is no change in either bank's liabilities

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Definitions:

Kahneman's Capacity Model

A cognitive theory proposed by Daniel Kahneman that outlines the limited capacity of the human brain to engage in multiple tasks, emphasizing the allocation of cognitive resources between competing demands.

Mental Resources

Cognitive capacities or energy dedicated to processing information, reasoning, and memory, crucial for performing mental tasks and decision-making.

Filter Theory

A theory of attention proposing that information that exceeds the capacity of a processor to process at any given time is blocked from further processing.

Unattended Information

Information that is present in the environment but is not the focus of one's attention or conscious awareness.