The Term Fractional Reserves Refers to

question 8

Multiple Choice

The term fractional reserves refers to

• A)The fact that reserves are split among many banks.
• B)Reserves being a small fraction of total transactions account balances.
• C)The ratio of required reserves to total loans.
• D)The ratio of excess reserves to total loans.

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Definitions:

Mechanisms

The underlying processes or structures through which something operates or is achieved.

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The biological existence or lifespan of an organism, encompassing processes from birth through growth, reproduction, and eventually death.

Population

The entire group of individuals or instances about whom the research is concerned, from which a sample may be drawn for study.

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