The Principle of Fractional Reserve Banking Makes It Possible for a

question 20

Multiple Choice

The principle of fractional reserve banking makes it possible for a

• A) bank to make loans.
• B) bank to print currency.
• C) bank to avoid reserve requirements.
• D) bank to sell securities.

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Definitions:

Pupil

The opening in the center of the iris of the eye, through which light enters and is regulated in size to control the amount of light that enters.

Optic Nerve

The nerve that transmits visual information from the retina to the brain.

Fovea

A small depression in the retina of the eye where visual acuity is highest, due to the concentration of cone cells.

Iris

The colored part of the eye surrounding the pupil, responsible for controlling the amount of light reaching the retina.