In a 100% reserve banking, the commercial banks are required to: Select one: a. Hold part of the deposits as reserves and lend the remaining to customers b. Hold the major part of deposits as reserves and lend the remaining part to customers c. None of the answers are correct d. Lend all the deposits to customers e. Hold all the deposits as reserves

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter25: Money, Banking, And The Federal Reserve System
Section: Chapter Questions
Problem 16P
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In a 100% reserve banking, the commercial banks are
required to:
Select one:
a. Hold part of the deposits as reserves
and lend the remaining to customers
b. Hold the major part of deposits as
reserves and lend the remaining part to
customers
c. None of the answers are correct
d. Lend all the deposits to customers
e. Hold all the deposits as reserves
Transcribed Image Text:In a 100% reserve banking, the commercial banks are required to: Select one: a. Hold part of the deposits as reserves and lend the remaining to customers b. Hold the major part of deposits as reserves and lend the remaining part to customers c. None of the answers are correct d. Lend all the deposits to customers e. Hold all the deposits as reserves
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