In a fractional-reserve banking system the reserve/deposit ratio equals:
A) more than 100 percent.
B) currency held by the public divided by deposits.
C) 100 percent.
D) less than 100 percent.
Correct Answer:
Verified
Q20: Money serves as a unit of account
Q21: Commercial banks create new money:
A)when they increase
Q22: Liabilities of the commercial banking system include:
A)reserves
Q23: The M2 measure of money consists of
Q24: When the actual reserve-deposit ratio exceeds the
Q26: There is $5,000,000 of currency in Econland,
Q27: Savings deposits are _ the M1 measure
Q28: The reserve-deposit ratio equals:
A)10 percent of bank
Q29: When a bank makes a loan by
Q30: Bank reserves are:
A)currency and customer checking deposits.
B)currency,
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