Net deposit drains refer to the amount by which cash withdrawals __________

Question

BlackTom AI · Accepted Answer

To analyze this question, I’ll examine what a net deposit drain means in the context of cash movements.
Option a: 'are less than additions – a cash outflow' suggests withdrawals are smaller than additions while still labeling the result as a cash outflow. This is inconsistent, because a net outflow (drain) would occur only when withdrawals exceed additions, not when they are smaller.
Option b: 'are less than additions – a cash inflow' combines withdrawals smaller than additions with an inflow designation. The combination is contradictory for a net drain scenario, and cash inflows are not described by withdrawals being less than additions.
Option c: 'exceed additions – a cash outflow' states that withdrawals exceed additions, which yields a net decrease in cash — i.e., a cash outflow. This aligns with the idea of a net deposit drain because more cash is leaving than entering.
Option d: 'exceed additions – a cash inflow' posits that withdrawals exceed additions but then labels the result as an inflow. That contradicts the direction of cash movement, since exceeding additions should reduce cash balance, not increase it.
In summary, option c correctly ties the condition (withdrawals exceeding additions) to the outcome (cash outflow), while the other options either misstate the direction of flow or mismatch the relationship between withdrawals and additions.

Net deposit drains refer to the amount by which cash withdrawals __________

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