Our banking system is called Fractional Reserve Banking because: a) banks are required to hold only a fraction of money deposited in them as reserves b) the banks excess reserves are always a faction of their total reserves c) banks hold money in many denominations d) the money in the banks can disappear in a fraction of a second
Our banking system is called Fractional Reserve Banking because: a) banks are required to hold only a fraction of money deposited in them as reserves b) the banks excess reserves are always a faction of their total reserves c) banks hold money in many denominations d) the money in the banks can disappear in a fraction of a second
Chapter19: Money Creation
Section: Chapter Questions
Problem 8SQ
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Our banking system is called Fractional Reserve Banking because:
a) banks are required to hold only a fraction of money deposited in them as reserves
b) the banks excess reserves are always a faction of their total reserves
c) banks hold money in many denominations
d) the money in the banks can disappear in a fraction of a second
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