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  3. Study Set
    Modern Principles of Economics
  4. Exam
    Exam 15: The Federal Reserve System and Open Market Operations
  5. Question
    In a Fractional Reserve Banking System, Banks Hold Only a Fraction
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In a Fractional Reserve Banking System, Banks Hold Only a Fraction

Question 151

Question 151

Multiple Choice

In a fractional reserve banking system, banks hold only a fraction of their:


A) loans as reserves.
B) deposits as reserves.
C) currency as reserves.
D) monetary base.

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