When a Check Written Against an Account at a Particular

question 142

Multiple Choice

When a check written against an account at a particular bank is cleared:

• A)it loses reserves and securities.
• B)it loses currency and savings deposits.
• C)it loses reserves and demand deposits.
• D)it gains loans and demand deposits.
• E)it gains reserves.

---

Definitions:

Unemployment Rate

The fraction of job-seekers within the labor force who do not have a job.

Exogenous

Factors or influences arising outside of a system that affect a model or process, without being affected in turn by that system.

Demand Shock

A sudden event that increases or decreases demand for goods or services in an economy, often leading to changes in prices and output.

Expansion Phase

A period in the business cycle when the economy moves from a trough to a peak, characterized by an increase in economic activity, production, and employment.