Solved

What Is Meant by a Fractional Reserve Banking System

Question 24

Multiple Choice

What is meant by a fractional reserve banking system?  


A)  Only a fraction of the banks in the system are allowed to create money. 
B)  Only a fraction of the banks in the system have reserves. 
C)  The claims outstanding against the bank are only a fraction of the bank's total reserves. 
D)  Bank reserves represent only a fraction of bank deposits.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions