The term fractional reserves refers to
A) The fact that reserves are split among many banks.
B) Reserves being a small fraction of total transactions account balances.
C) The ratio of required reserves to total loans.
D) The ratio of excess reserves to total loans.
Correct Answer:
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Q50: Which of the following is not considered
Q51: The ratio of a bank's total reserves
Q52: Deposit creation occurs when
A)A bank lends money.
B)A
Q53: One of the main functions of banks
Q54: Which of the following reflects the concept
Q56: Suppose a bank has $300,000 in deposits
Q57: Required reserves represent
A)A leakage from the flow
Q58: Suppose a bank has $500,000 in deposits
Q59: The banking system can lend the sum
Q60: The various money supply measures (M1 and
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