Question

Briefly describe what the custodian does. The custodian the check and places of currency and coin Choose from any list or enter any number in the input fields and then continue to the next question.

Answer 1

The custodian manages the secure handling of checks and cash, facilitating the transfer of funds from checkable accounts. The Federal Reserve regulates currency availability, adjusting the M1 money supply to meet seasonal demands.

Step-by-step explanation:

The custodian of a check is responsible for ensuring the secure handling and deposit of checks and cash. In the context of a bank, the custodian would verify the check and process it to transfer funds appropriately. If an individual or business writes a check for payment, they must have sufficient funds in their checking account to cover it. This is because checks are drawn against the funds deposited in checkable accounts, also known as demand deposits. Banks provide the service of converting checks and electronic payments into currency for the recipient, ensuring the smooth function of transactions.

The Federal Reserve plays a key role in regulating the amount of currency and coins available in the economy, often adjusting the supply to meet seasonal demands, such as increasing currency in banks during the Christmas shopping season. This activity is part of managing the M1 money supply, which includes physical currency in circulation and demand deposits, reflecting the liquid forms of money available for immediate spending.

Answer 2

The custodian in a bank is responsible for handling and managing currency and coins, ensuring their authenticity, counting and organizing them, and placing them in the appropriate locations within the bank.

Step-by-step explanation:

The custodian is responsible for handling and managing currency and coins in a bank. Their main tasks include checking the authenticity of currency and coins, counting and organizing them, and placing them in the appropriate locations within the bank.

For example, if a customer deposits cash at a bank, the custodian will verify the bills and coins for any counterfeit notes or coins. They will then count and sort the money before placing it in the bank's vault or cash drawers.

This role is crucial in maintaining the accuracy and security of the bank's cash inventory and ensuring that customers' deposits are handled properly.