Table 11-5. -Refer to Table 11-5. from the Table It Follows That

Multiple Choice

Table 11-5.

-Refer to Table 11-5. From the table it follows that the Bank of Pleasantville operates in a

A) fractional-reserve banking system, since its reserves are less than its deposits.
B) fractional-reserve banking system, since its reserves are less than its loans.
C) 100-percent-reserve banking system, since its assets are equal to its liabilities.
D) 100-percent-reserve banking system if the Fed's reserve requirement is 10 percent; otherwise, it operates in a fractional-reserve banking system.