Fractional reserve banking mans:
A) banks hold cash reserve less than 100 per cent of their deposit liabilities.
B) banks hold reserves in the form of government bonds.
C) banks never run out of currency.
D) all the above.
Correct Answer:
Verified
Q31: Which one do you think is an
Q32: Which of the following is the most
Q33: Bank profits come from:
A) rental income on
Q34: A recent development in the financial services
Q35: Banks create money by:
A) granting new loans.
B)
Q37: In a fractional-reserve banking system, the reserves/deposits
Q38: If the reserve/deposit ratio (rr) is 0.2
Q39: Banks create money, when banks:
A) extend loans
Q40: The currency ratio (cr) is:
A) the ratio
Q41: The reserve ratio (rr) in the banking
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