Which of the Following Events Would Cause a Bank to Debit

question 183

Multiple Choice

Which of the following events would cause a bank to debit a depositor's account?

• A) The depositor authorizes the bank to charge the depositor's account $50 for new checks.
• B) The bank collects a note receivable and related interest on the depositor's behalf.
• C) The depositor determines there are outstanding checks drawn on the account at month-end.
• D) The depositor determines there are deposits in transit on the account at month-end.
• E) The bank determines it incorrectly charged the depositor's account twice for the monthly service charge in a previous month.

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Definitions:

Multiplier

In economics, a factor by which an initial change in spending is magnified or multiplied in the overall economy.

Automatic Stabilizer

Economic policies and programs, such as unemployment insurance, that automatically adjust to counteract economic fluctuations without the need for explicit government intervention.

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and taxation, that automatically adjust with economic conditions to stabilize income and spending.

Recession

An interval of momentary economic contraction characterized by decreased commercial and industrial operations, commonly signaled by a reduction in Gross Domestic Product over two back-to-back quarters.