A System in Which Banks Hold Reserves Whose Value Is

question 214

Multiple Choice

A system in which banks hold reserves whose value is less than the sum of claims on those reserves is called

• A) speculative banking.
• B) leveraged banking.
• C) fractional reserve banking.
• D) international banking.

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Definitions:

Grapevine

An informal communication channel within organizations where information, often unverified or speculative, spreads quickly among employees.

Rumors

Unverified information or stories spread informally, usually carrying uncertainty or ambiguity.

Richest Communication

The most effective and comprehensive form of communication, typically involving multiple channels such as verbal, nonverbal, and written methods.

Organizational Ecology

A theoretical and empirical approach in sociology that considers the environment, evolution, and life cycles of organizations.