The Requirement on Banks to Hold Only a Portion of Their

question 6

Multiple Choice

The requirement on banks to hold only a portion of their deposits as reserves is known as

• A)the federal reserve system.
• B)the fractional reserve banking system.
• C)the federal open market system.
• D)the federal deposit insurance system.

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Definitions:

Mediator

A neutral third party who assists in negotiations and conflict resolution between disputing parties.

Interest Group

An organization of people who share common goals and unite to influence public policy and opinion.

Federal Executive Agency

An administrative agency of the federal government of the United States, acting under the direct authority of the President or the U.S. cabinet.

National Science Foundation

A federal agency in the United States that supports fundamental research and education in all the non-medical fields of science and engineering.