Solved

Fractional Reserve Banking Is a Term Used to Describe a Banking

Question 47

Multiple Choice

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents