The Fractional Reserve System of Banking Evolved Because

question 54

Multiple Choice

The fractional reserve system of banking evolved because

• A)goldsmiths did not have safes large enough to hold all their gold deposits.
• B)there was always a dire need for additional money.
• C)goldsmiths knew that on any given day, only a few depositors would come to claim their deposits.
• D)goldsmiths knew that they would not be prosecuted for lending out money they did not have.

---

Definitions:

Zero-point Error

A measurement error that occurs when an instrument does not register a zero reading when the true value of the measured quantity is zero.

Visuals

Elements that are designed to be seen, such as photographs, charts, and diagrams, used to communicate information or ideas.

Primary Aspects

Fundamental elements or characteristics that are central to understanding or analyzing a subject or issue.

Area Chart

A type of graph that represents quantified values as areas under a line, often used to track changes over time.