Whenever Somebody Deposits a Check from Bank a into a Checkable

question 116

Multiple Choice

Whenever somebody deposits a check from bank A into a checkable deposit at bank B,bank A's reserves ________ and bank B's reserves ________.

• A)increase;decrease
• B)increase;increase
• C)decrease;decrease
• D)decrease;increase
• E)do not change;do not change

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Definitions:

Agency Independence

The degree of autonomy and freedom from external control and influence that an administrative agency has, allowing it to operate without political pressure.

Separation of Power

A constitutional principle that divides the responsibilities of government among distinct branches to prevent the concentration of power and ensure checks and balances.

Legislative Branch

One of the three branches of the U.S. government, responsible for making and enacting laws, consisting of the Senate and the House of Representatives.

Enabling Legislation

The statute by which a legislative body creates an administrative agency.