Question

When Alex in Quince Orchard, MD, uses a check to buy a tractor from Steven in Austin, TX, __________ different banks are involved in the transaction.

Answer 1

Answer:

Four banks are invloved

Explanation:

The reason is that one bank is the one in which Alex has its account and the other bank bank is the bank in whihc Steven has account. Quince Orchard in one state and austin is in the other state, so central banks of each state will be involved in transferring the money from one bank account to the other bank accounts so the total number of banks involved are four.

Answer 2

Answer:

four

Explanation:

The four different banks involved are:

1. Alex's local bank in Maryland
2. The Richmond Federal Reserve Bank that serves the fifth district which performs check clearing activities.
3. Steven's local bank in Texas
4. The Dallas Federal Reserve Bank that serves the eleventh district which also performs check clearing activities.

there are 12 Federal Reserve Banks in the US, each serving a specific geographical area.