Economics for Today 9th Edition by Irvin Tucker

تمرين 1

Which of the following correctly describes fractional reserve banking?
A) The federal government only insures a fraction of the deposits at most banks.
B) Banks keep a fraction of their loans with other banks to maintain the quality of their loan portfolio.
C) Banks can loan out all but a small fraction of its own money, but must hold all money deposited at the bank on reserve in bank vaults.
D) Banks can loan out all but a fraction of its own money, but must hold all money deposited at the bank on reserve in bank vaults.