When a Check Is Written on an Account at Bank

question 174

Multiple Choice

When a check is written on an account at Bank A and deposited in Bank B,the reserve account of __________ will rise and reserves of the entire banking system will __________.

• A) Bank A; rise
• B) Bank A; remain constant
• C) Bank B; rise
• D) Bank B; remain constant

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Definitions:

Economic Efficiency

A measure of how well resources are utilized and allocated to maximize productivity and meet the needs and wants of society.

Quintile Distribution

The division of a population or dataset into five equal groups or parts, often used in economic studies to analyze income or wealth distribution.

Before-Tax Household Income

The total income earned by a household before any taxes are deducted.

Greater Inequality

Refers to an increase in the unequal distribution of resources, wealth, or opportunities within a society or between different societies.