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    Principles of Macroeconomics Study Set 8
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    Exam 16: The Monetary System: Banks and the Money Supply
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    In a Fractional-Reserve Banking System,a Bank
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In a Fractional-Reserve Banking System,a Bank

Question 55

Question 55

Multiple Choice

In a fractional-reserve banking system,a bank


A) does not make loans.
B) does not accept deposits.
C) keeps only a fraction of its deposits in reserve.
D) None of the above is correct.

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