Fractional reserve banking is a term used to describe a banking system whereby
A) individual banks share a fraction of the total funds deposited in the whole banking system.
B) banks are required to quote interest rates in fractions.
C) banks hold reserves equal to only a fraction of their deposit liabilities.
D) banks hold reserves equal to a multiple of their deposit liabilities; that is,fractional in this case really means multiple.
E) banks are required to maintain a certain fraction of their deposits in the form of checkable deposits,a certain fraction of their deposits in the form of savings deposits,etc.
Correct Answer:
Verified
Q42: Total bank reserves equal
A) checkable deposits +
Q43: In the history of banking,warehouse receipts refer
Q44: If checkable deposits in Bank A total
Q45: Historically,which of the following goods have evolved
Q46: Required reserves are the amount of
A) reserves
Q48: M1 is comprised of currency held outside
Q49: The requirement of a "double coincidence of
Q50: Which of the following statements is true?
A)
Q51: According to the textbook,L.Frank Baum,the author of
Q52: A savings deposit is a type of
A)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents