The term fractional reserves refers to:
A) The fact that reserves are split among many banks.
B) Reserves being a fraction of total deposits.
C) The ratio of required reserves to total loans.
D) The ratio of excess reserves to total loans.
Correct Answer:
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Q44: Required reserves represent:
A) A leakage from the
Q45: Money creation occurs when:
A) A person puts
Q46: The assets held by a bank to
Q47: If you deposit $1,000 in your checking
Q48: When a bank makes a loan:
A) It
Q50: Ceteris paribus,the money supply becomes smaller when:
A)
Q51: Which of the following does not occur
Q52: Ceteris paribus,if Tamika pays off a loan
Q53: Banks are most profitable when:
A) Loans are
Q54: The reserve ratio is the ratio of:
A)
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