Deck 27: Money and Banking

Question 1

The Canadian banking system is a

A)treasury- bill reserve system.
B)target- reserve system.
C)gold- reserve system.
D)asset- backed reserve system.
E)fractional- reserve system.

Answer 1

E

Question 2

In the event of a sudden loss in confidence in the ability of the commercial banks to redeem deposits, the Bank of Canada would probably

A)impose severe financial penalties on the commercial banks by charging them interest at higher than the Bank rate.
B)offer to sell government bonds to the chartered banks.
C)take over the operation of any banks in severe difficulties.
D)suspend operation of the banking system until the panic subsided.
E)lend reserves to the commercial banks.

Answer 2

E

Question 3

Historically, when gold and silver coins were used as money, their debasement resulted in

A)a decrease in the money supply.
B)an increase in the amount of gold bullion.
C)deflation
D)an increase in the desire to store wealth by holding coins.
E)an increase in the supply of money.

Answer 3

E

Question 4

Other things being equal, the purchasing power of money is

A)directly related to the price level.
B)directly related to the level of aggregate demand.
C)inversely related to the level of aggregate demand.
D)directly related with the cost of living.
E)inversely related to the price level.

Question 5

Debit cards that are issued by commercial banks can be characterized as

A)an example of near money.
B)deposit money.
C)an electronic version of a cheque.
D)a store of value.
E)flat money.

Question 6

Which of the following entries would appear on the liabilities side of the Bank of Canada's balance sheet?

A)advances to commercial banks
B)deposits of commercial banks
C)Government of Canada securities
D)shareholders' equity
E)savings deposits

Question 7

If a majority of Canadian households and businesses refused to accept Canadian dollars in exchange for goods and services, the value of the Canadian dollar would

A)stay constant since its value is determined only by the Bank of Canada.
B)stay constant since its value is determined only by the Government of Canada.
C)fall.
D)stay constant since the value does not depend on its acceptability by people.
E)rise since less would be in circulation.

Question 8

Suppose the rare event occurs that a major Canadian commercial bank is on the verge of insolvency and collapse due to volatile world credit markets. The likely initial response is

A)the adoption of all of the bank's liabilities by the Bank of Canada as the "lender of last resort".
B)the provision of funds by the World Bank as the "lender of last resort".
C)a bankruptcy filing overseen by the Superintendent of Financial Institutions.
D)the provision of funds by the Bank of Canada as the "lender of last resort".
E)the sale of the bank's assets to the remaining commercial banks.

Question 9

If the Bank of Canada enters the open market and purchases $1000 of government securities, what will be the eventual change in the money supply given a 10 percent target reserve ratio in the commercial banking system?

A)decrease of $10 000
B)increase of $5000
C)decrease of $5000
D)decrease of $1000
E)increase of $10 000

Question 10

Consider a new deposit of $10 000 to the Canadian banking system. The commercial bank that initially receives this deposit will find itself with

A)no excess reserves if there is no reserve requirement.
B)$1 000 of excess cash reserves if its target reserve ratio is 10 percent.
C)$2 000 of excess cash reserves if its target reserve ratio is 2 percent.
D)$9 000 of excess cash reserves if its target reserve ratio is 10 percent.
E)$98 000 of excess cash reserves if its target reserve ratio is 2 percent.

Question 11

A new deposit to the banking system can result when

A)the Bank of Canada buys a government security from a firm, which keeps the proceeds from the sale in a company vault.
B)an individual stashes cash in a mattress.
C)the Bank of Canada buys a government security from a firm, which then deposits the proceeds from the sale in its account at a commercial bank.
D)a new immigrant to Canada sends cash to his or her home country.
E)the Bank of Canada sells a government security to a firm which then maintains the asset in a bank.

Question 12

Commercial banks hold a fraction of their deposits in cash in their vaults (or as deposits with the central bank). This fraction is known as

A)the excess reserve ratio.
B)the required reserve.
C)the reserve ratio.
D)the fractional reserve.
E)the target reserve.

Question 13

Suppose that the cash drain in the banking system increases during holiday periods. As a result,

A)the capacity of the banking system to create deposit money is increased during holiday periods.
B)changes in reserves will result in no change in deposits during holiday periods.
C)commercial banks decrease their target reserve ratios.
D)the money supply will automatically increase.
E)the capacity of the banking system to create deposit money is dampened during holiday periods.

Question 14

"Excess reserves" for a commercial bank refer to

A)any surplus of chequable deposits.
B)any reserves (cash or deposits with the Bank of Canada)that the bank holds over and above its desired reserves.
C)reserves (cash or deposits with the Bank of Canada)that the Bank of Canada requires the bank to hold.
D)any surplus in the bank's supply of gold.
E)excess demand for money from that bank.

Question 15

Suppose an economy has two types of money -- gold and silver coins -- that are both legal tender but have different non- monetary values. Gresham's law has come into effect when

A)people use the higher- valued coins for exchange and the lower- valued for savings.
B)the higher- valued coin is taken out of circulation.
C)people refuse to use the coins of lesser value.
D)the value of the coins is in the same ratio as their non- monetary values.
E)the lower- valued coin is taken out of circulation.

Question 16

Suppose you come into possession of two "silver" dollars, one minted in the 1950s which contains a lot of silver, the other minted in the 1990s which contains no silver at all. The legal exchange rate between the coins is fixed at one for one. According to Gresham's law, the 1950s silver dollar:

A)will drive out of circulation the 1980s silver dollar.
B)is less likely to be used as a store of value because it will appear old fashioned.
C)is more likely to be used as a medium of exchange.
D)is less likely to be used as a medium of exchange.
E)is considered "bad" money.

Question 17

Canadian commercial banks maintain their reserves in the form of

A)cash in their bank vaults.
B)deposits at other commercial banks that are immediately accessible.
C)cash in their bank vaults and deposits at the Bank of Canada.
D)gold in their bank vaults.
E)cash and foreign currency at the Bank of Canada.

Question 18

The functions of the Bank of Canada include

A)providing deposit insurance at Canadian commercial banks.
B)acting as the lender of last resort for the largest private corporations.
C)setting the exchange rate for the Canadian dollar on world markets.
D)acting as banker for the commercial banks.
E)regulating both the money market and stock market.

Question 19

Which of the following was the most important initial step in the evolution of paper currency?

A)the issuance of currency by governments
B)the acceptance of goldsmiths' receipts
C)the use of the Gold Standard
D)the acceptance of metallic coins
E)the acceptance of bank notes

Question 20

A desire by has no effect on the ability of the banking system to create bank deposits, for a given amount of reserves in the banking system.

A)households to increase the fraction of their money held in the form of currency
B)banks to delay making loans in expectation of higher future interest rates
C)firms to reduce their desired level of borrowing from banks
D)households to hold more money in safety- deposit boxes
E)the government to increase its level of spending

Question 21

Suppose a commercial bank has a target reserve ratio of 1 percent, but has an actual reserve ratio of 0.8 percent. This bank will likely

A)allow fewer cash withdrawals by the bank's customers.
B)maintain its new, higher reserve ratio because it is more profitable.
C)expand its portfolio of loans.
D)buy government securities from the Bank of Canada.
E)contract its portfolio of loans.

Question 22

have a high value- weight ratio.

A)1 only
B)2 only
C)3 only
D)1, 2, and 3
E)1 and 2

Question 23

Developments in the financial industry in recent years have resulted in a multitude of types of deposits. For the purposes of studying the money supply, the most important distinction is between chequing and savings deposits which are and term deposits and other financial assets which are .

A)media of exchange; not media of exchange
B)money substitutes; near money
C)a unit of account; not a unit of account
D)a store of value; not a store a value
E)a component of the money supply; not a component of the money supply

Question 24

If the target reserve ratio in the banking system is 1 percent, there is no cash drain, and there are no excess reserves, a new deposit of $1 will lead to an expansion of the money supply of

A)$0.01
B)$1.10
C)$1.00
D)$10.00
E)$100.00

Question 25

Fiat money has value because it

A)has intrinsic value equal to its face value.
B)is only fractionally backed by gold.
C)is generally accepted.
D)can be manufactured at will by the issuing government.
E)is fully backed by gold at a fixed ratio.

Question 26

Suppose you found a $100 bill that was lost for several years under your grandmother's mattress and you decided to deposit this money in a commercial bank. If the target reserve ratio were 20 percent and all excess reserves were lent out, your new deposit of $100 would lead to an eventual expansion of the money supply of

A)$120.
B)$200.
C)$500.
D)$1200.
E)$2000.

Question 27

The Canada Deposit Insurance Corporation (CDIC)was set up to protect

A)depositors with Canadian dollar accounts in any Canadian financial institution for up to a maximum of $100 000 per institution.
B)depositors of any currency in any Canadian financial institution for up to a maximum of $100 000 per institution.
C)depositors with Canadian dollar accounts in member institutions for up to a maximum of $100 000 per eligible deposit.
D)member financial institutions in case of non- payment of loans from the government.
E)member financial institutions in case of non- payment of loans from borrowers.

Question 28

If the target reserve ratio in the banking system is 10 percent, there is no cash drain, and there are no excess reserves, a new deposit of $1 will lead to an eventual expansion of the money supply of

A)$0.01
B)$0.10
C)$1.00
D)$10.00
E)$100.00

Question 29

A commercial bank's target reserve ratio is the

A)fraction of its deposit liabilities that are backed by gold.
B)fraction of its deposit liabilities that it wishes to holds as reserves, either as cash or as deposits with the Bank of Canada.
C)fraction of its deposit liabilities that it actually holds as cash in its own vaults.
D)ratio of chequable deposits to term deposits that the bank holds on its books.
E)ratio of Canadian dollars to foreign currencies that the bank holds on its books.

Question 30

Commercial banks in Canada

A)have a reserve ratio of 100 percent.
B)never have excess reserves.
C)have a reserve ratio of zero.
D)have a positive reserve ratio.
E)are required by the Bank Act to hold required reserves.

Question 31

Doug compares the unit price of chocolate bars in order to get the "best buy". This represents using money as

A)a unit of deferred payment.
B)a medium of exchange.
C)a unit of account.
D)a store of value.
E)a money substitute.

Question 32

A central bank can "create" money by

A)increasing the rate of inflation.
B)purchasing government securities on the open market.
C)selling government Treasury bills to the commercial banks.
D)issuing its own Central Bank bonds.
E)selling some of its foreign- currency reserves for domestic currency.

Question 33

The concept of "near money" refers to

A)cheques on demand deposits.
B)assets that fulfill the medium- of- exchange function but not the store of value function.
C)financial assets whose capital values are too unstable for them to be classified as money.
D)money substitutes such as credit cards.
E)assets that fulfill the temporary store- of- value function but not the medium- of- exchange function.

Question 34

Suppose Bank ABC has a target reserve ratio of 10 percent, no excess reserves, and it receives a new deposit of $500 000. This bank will initially expand its loans by

A)$500 000.
B)$5 million.
C)$50 000.
D)$450 000.
E)$4.5 million.

Question 35

The largest component of the liabilities of the Bank of Canada is

A)Government of Canada deposits.
B)Canadian dollars in circulation.
C)deposits of commercial banks and other financial institutions.
D)Government of Canada securities.
E)loans to private individuals.

Question 36

Which of the following examples constitutes a new deposit to the Canadian commercial banking system?

A)an individual immigrates to Canada and maintains his existing deposits in a foreign bank.
B)an individual transfers money from Ship Shape Credit Union to Scotiabank.
C)the Bank of Canada buys government securities from a Canadian commercial bank.
D)an individual puts cash in a safety- deposit box.
E)the Bank of Canada buys foreign currency from abroad.

Question 37

A bank run is unlikely to occur in Canada today because,

A)the commercial banks are required by law to maintain 100 percent of their deposits in cash.
B)there is relatively little demand for cash at present.
C)if necessary, the central bank can provide all the reserves that are necessary to avoid this situation.
D)the commercial banks hold enough government securities that are convertible into cash.
E)banking is done mostly electronically.

Question 38

The use of money in an economy does which of the following?

A)creates the necessity for a double coincidence of wants.
B)promote specialization and the division of labour.
C)creates a problem of trading a portion of indivisible commodities such as a ship.
D)solves the problem of inflation.
E)promotes the use of barter.

Question 39

Which of the following illustrates the use of fiat money?

A)exchanging money- market funds for gold
B)bartering goods for services
C)exchanging money- market funds for insurance
D)keeping gold as a hedge against inflation
E)exchanging Canadian dollars for a T- shirt

Question 40

As a measure of the Canadian money supply, M2+ is defined as currency in circulation plus

A)term deposits, money market funds and personal savings accounts.
B)term deposits and money market funds at all financial institutions.
C)all chequable deposits.
D)chequable and non- chequable deposits at all financial institutions.
E)savings deposits at the chartered banks and non- bank financial institutions.

Question 41

A commercial bank's actual reserve ratio is the

A)fraction of its deposit liabilities that it actually holds as reserves, either as cash or as deposits with the Bank of Canada.
B)ratio of chequable deposits to term deposits that it holds on its books.
C)fraction of its deposit liabilities that it actually holds as gold, other precious metal or cash in its own vaults.
D)fraction of its deposit liabilities that are backed by gold.
E)ratio of Canadian dollars to foreign currencies that it holds on its books.

Question 42

The major problem of a currency that is fractionally backed and convertible into a precious metal is that of

A)clipping, which debases the metal coins.
B)maintaining its convertability into the metal.
C)perennial shortages of paper currency.
D)paper money being less durable than gold.
E)counterfeiting.

Question 43

In order to be considered "money", paper currency must be

A)impossible to counterfeit.
B)convertible into a precious metal.
C)issued by a government agency.
D)generally acceptable as a medium of exchange.
E)issued by a chartered bank.

Question 44

If most individuals accept paper currency in transactions, and paper currency is convertible into gold, then banks can safely issue

A)paper currency equal to the bank's commercial debt divided by their gold reserves.
B)as much paper currency as they please.
C)more paper currency than the value of the gold they hold.
D)no more paper currency than the value of the gold they hold.
E)paper currency equal to a fraction of the gold they hold.

Question 45

Suppose Bank ABC has a target reserve ratio of 10 percent. If Bank ABC receives a new deposit of $100 000 it will immediately find itself with

A)excess cash reserves of $90 000.
B)excess cash reserves of $10 000.
C)excess cash reserves of $100 000.
D)no excess cash reserves.
E)excess cash reserves equal to 10 percent of its deposits.

Question 46

The expansion of deposits resulting from an injection of cash to the banking system can be calculated as follows:

A)the change in deposits is equal to the change in loans divided by the sum of the target reserve ratio.
B)the change in deposits is equal to the change in reserves divided by the cash- deposit ratio.
C)the change in deposits is equal to the change in reserves divided by the sum of excess reserves and cash drain.
D)the change in deposits is equal to the change in reserves divided by the sum of the target reserve ratio and the cash- deposit ratio.
E)the change in deposits is equal to the change in reserves divided by the target reserve ratio.

Question 47

If all the commercial banks in the banking system collectively have $300 million in cash reserves and are satisfying their target reserve ratio of 20 percent, what is the amount of deposits they have?

A)$1500 million
B)$0
C)$600 million
D)$2000 million
E)$60 million

Question 48

Without a central bank, commercial banks in Canada would probably hold reserves than they do now, resulting in a money supply than at present.

A)more; larger
B)more; smaller
C)less; larger
D)less; smaller
E)the same; the same

Question 49

regulating the money supply.

A)2 only
B)3 only
C)1, 2, and 3
D)2 and 3
E)1 only

Question 50

Suppose the Canadian banking system jointly has $20 million in reserves (cash and deposits at the Bank of Canada), all banks have a target reserve ratio of 20 percent, and there are no excess reserves. What is the amount of deposits in the banking system?

A)$100 million
B)$4 million
C)$80 million
D)$40 million
E)$120 million

Question 51

Gresham's law predicts that

A)good money drives out bad money.
B)money is neutral in the long run.
C)undebased money will be driven from circulation.
D)debased money will be driven from circulation.
E)debased money will circulate with undebased money.

Question 52

The M2++ and M3 definitions of the money supply include financial assets

A)that are easily convertible into a medium of exchange.
B)such as a credit card.
C)such as term deposits at non- bank financial institutions.
D)such as a government Treasury bill.
E)such as term deposits at the chartered banks.

Question 53

For a country to be on a "gold standard", it must

A)use gold coins as money and promise never to debase its coins.
B)use gold as money, but not necessarily in the form of gold coins.
C)make its currency convertible into gold at a fixed rate of exchange.
D)use gold as fiat money.
E)use gold coins as money.

Question 54

Suppose a student deposits into a downtown bank a $200 cheque that she received from her parents in the suburbs. This transaction alone would

A)decrease the money supply.
B)decrease the money supply by $1000 if the target reserve ratio was 20 percent.
C)increase the money supply by an indeterminate amount.
D)not change the money supply.
E)increase the money supply by $1000 if the target reserve ratio was 20 percent.

Question 55

If the target reserve ratio in the banking system is 20 percent, there is no cash drain, and there are no excess reserves, a new deposit of $1 will lead to an eventual expansion of the money supply of

A)$0.20
B)$1.20
C)$2.00
D)$5.00
E)$20.00

Question 56

Other things being equal, a rise in the price level will

A)stabilize the value of money.
B)increase the purchasing power of money.
C)have no effect on the value of money
D)increase the value of money.
E)decrease the purchasing power of money.

Question 57

The currency that is in circulation in Canada today is

A)fully backed by gold held at the central bank.
B)not officially backed by anything.
C)backed by the U.S. dollar.
D)backed by the euro.
E)fractionally backed by gold.

Question 58

Doug is saving money in order to purchase a new snowboard next winter. This represents using money as

A)a medium of deferred payment.
B)method of barter.
C)a store of value.
D)a medium of exchange.
E)a unit of account.

Question 59

Consider a new deposit of $10 000 to the Canadian banking system. The bank that initially receives this deposit will find itself with

A)no excess reserves if there is no reserve requirement.
B)$1000 of excess cash reserves if its target reserve ratio is 10 percent.
C)$2000 of excess cash reserves if its target reserve ratio is 10 percent.
D)$8000 of excess cash reserves if its target reserve ratio is 20 percent.
E)$10 000 of excess cash reserves if its target reserve ratio is 100 percent.

Question 60

Credit cards are considered to be "money substitutes" instead of money because

A)they cannot serve as a temporary medium of exchange.
B)they are not acceptable to pay for purchases.
C)money must eventually be used to pay for the transaction.
D)credit card accounts are not chequable.
E)the only function of money they can perform is to serve as a store of value.

Question 61

Suppose you found a $100 bill that was lost for several years under your grandmother's mattress. If the banking system has a cash drain of 5 percent, its target reserve ratio is 20 percent, and all excess reserves were lent out, your new deposit of the $100 bill would lead to an eventual expansion of the money supply of

A)$20.
B)$25.
C)$200.
D)$400.
E)$500.

Question 62

If all the banks in the banking system collectively have $20 million in cash reserves, and have a target reserve ratio of 5 percent, the maximum amount of deposits the banking system can support is

A)$4 million.
B)$40 million.
C)$80 million.
D)$100 million.
E)$400 million.

Question 63

Consider a new deposit of $10 000 to the Canadian banking system. Assuming that all Canadian banks have a target reserve ratio of 2 percent, and that there is no cash drain, the banking system as a whole could create as a result of this single new deposit.

A)$10 000 of new deposits
B)$50 000 of new deposits
C)$500 000 of new deposits
D)$980 000 of additional loans
E)$1 000 000 of additional loans

Question 64

Commercial banks in Canada are prohibited by law from

A)lending money to households and firms.
B)issuing paper currency.
C)settling inter- bank debts through a clearinghouse.
D)accepting demand deposits.
E)accepting term deposits.

Question 65

In recent years, the use of debit cards issued by commercial banks has skyrocketed. When you pay for a purchase at a store using a debit card, you are

A)authorizing the transfer of cash from your bank account to the merchant's bank account.
B)authorizing an electronic transfer of deposit money from you to the merchant.
C)creating an electronic debt to the merchant.
D)authorizing the transfer of bank notes from you to the merchant.
E)authorizing an electronic transfer of a money substitute from you to the merchant.

Question 66

Which of the following is an example of "near money"?

A)mortgage on a house
B)Scotiabank credit card
C)30- day Treasury bill
D)American Express card
E)car loan

Question 67

When metal coins, such as gold and silver, were used as money, a technique which helped to prevent the reduction of their value through clipping was

A)milling.
B)sweating.
C)debasement.
D)re- minting.
E)basing.

Question 68

Suppose that the excess reserves in Toronto Dominion Bank increase by $700. Given a desired reserve ratio of 2.5 percent and no cash drain, the maximum change in deposits for the entire banking system would be

A)$682.50.
B)$70 000.00.
C)$28 000.00.
D)$700.00.
E)$17 500.00.

Question 69

An example of the use of money as a medium of exchange is:

A)Mike gets a friend to give him a beer today in return for promising to give the friend two beer when Mike gets paid at the end of the month.
B)Judy lends her car to a friend who signs a promissory note that she will pay Judy $10 a day for the use of the car after she returns the car to Judy.
C)ABC Investments Inc. enters in its account books that it owes Nallai $20 for his last month's investment income.
D)Dave keeps $250 in his drawer for a 'rainy day'.
E)Barry pays $275 with his bank debit card for tickets for an NHL play- off game.

Question 70

Which of the following entries would appear on the assets side of a commercial bank's balance sheet?

A)Government of Canada deposits
B)Government of Canada securities
C)savings deposits
D)chequable deposits
E)shareholders' equity

Question 71

The biggest disadvantage of a barter system compared to one that uses money is that

A)it is difficult to find goods to trade in a barter system that satisfy the needs of society.
B)a standardized unit of account cannot exist in a barter system.
C)commodities are difficult to use as a store of value.
D)each trade requires a double coincidence of wants.
E)commodities are difficult to transport and therefore inefficient for exchange.

Question 72

Most Canadians accept Canadian dollars in payment for goods and services in Canada because they have confidence that the dollar

A)is accepted by foreigners as more stable than their own currency.
B)is fully convertible into gold.
C)is fully convertible into American dollars at a set exchange rate.
D)will be accepted in the future.
E)is fully backed by the British pound sterling.

Question 73

If the Bank of Canada enters the open market and sells $1000 of government securities, what will be the eventual change in the money supply given a 10 percent target reserve ratio in the commercial banking system and a 10 percent cash drain?

A)decrease of $10 000
B)decrease of $5000
C)increase of $10 000
D)increase of $5000
E)decrease of $1000

Question 74

The major advantage of using money rather than barter is that

A)money is universally accepted.
B)in the barter system there is no way to express values of commodities.
C)money is the only convenient way to store one's wealth.
D)the use of money significantly reduces transactions costs.
E)money stays where you put it, whereas a cow often has to be fenced in.

Question 75

Until recently, and for many years, the common definition of the money supply used by the Bank of Canada was M1, which included currency in circulation plus

A)savings accounts and demand loans.
B)chequable deposits and savings accounts at the chartered banks.
C)chequable deposits at the chartered banks.
D)chequable deposits at all financial institutions.
E)term deposits and money market funds.

Question 76

Suppose Bank ABC has a target reserve ratio of 2 percent. If Bank ABC receives a new deposit of $50 million it will immediately find itself with

A)excess cash reserves of $10 million.
B)no excess cash reserves.
C)excess cash reserves of $49.5 million.
D)excess cash reserves of $49 million.
E)excess cash reserves of $1 million.

Question 77

The main distinction between M2 and M2+ is that M2+ also includes

A)coins in circulation.
B)deposits at financial institutions other than the chartered banks.
C)deposits at trust companies, caisse populaires and foreign- currency accounts.
D)paper currency.
E)money market mutual funds held by the Bank of Canada.

Question 78

Suppose that the excess reserves in Toronto Dominion Bank increase by $700. Given a target reserve ratio of 1.0 percent and no cash drain, the maximum change in deposits for the entire banking system would be

A)$28 000.00.
B)$700.00.
C)$682.50.
D)$17 500.00.
E)$70 000.00.

Question 79

The money supply in Canada is measured using M1, M2, M2+, and M3. The reason there are so many measures of the money supply is that

A)it is a convenient way for provincial and federal governments to hide their budgetary surpluses.
B)only the newer and broader measurements are correct but the older measurements are still used so that historical comparisons are possible.
C)the Bank of Canada wants to confuse the general public.
D)different kinds of bank accounts represent different functions of money, and so the various measures are used to reflect these different functions.
E)the money supply is too large to have only one measurement.

Question 80

When you pay for your $74 purchase at the grocery store with a debit card, you are

A)withdrawing $74 from your bank account with which you pay for your groceries.
B)transferring $74 of currency from your bank account to the grocery store's bank account.
C)transferring your claim on $74 worth of gold to the grocery store.
D)essentially promising the grocery store that your bank will pay them $74 at the end of the month when debts are settled.
E)electronically transferring $74 of deposit money from your bank account to the grocery store's bank account.