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A Bank's Assets Equal Its Liabilities Under

Question 3

Multiple Choice

A bank's assets equal its liabilities under


A) both 100-percent-reserve banking and fractional-reserve banking.
B) 100-percent-reserve banking but not under fractional-reserve banking.
C) fractional-reserve banking but not under 100-percent-reserve banking.
D) neither 100-percent-reserve banking nor fractional-reserve banking.

Correct Answer:

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