A Checkable and Debitable Banking Account Is

question 214

Multiple Choice

A checkable and debitable banking account is

• A) a liability to a commercial bank.
• B) an asset to a commercial bank.
• C) a liability to the household or firm that has the account.
• D) an asset for the Federal Reserve System.

---

Definitions:

Framing

Aspects of the presentation of information about a problem that are assumed by decision makers.

Confirmation Bias

The tendency to seek out information that conforms to one’s own definition of or solution to a problem.

Economic Person

A concept in economics and sociology that describes an individual who acts in a rational manner, making decisions based on maximizing personal financial gain.

Rational Decisions

Choices made based on logical reasoning, where alternatives are objectively evaluated based on facts and a clear understanding of goals.