An Important Effect of Fractional Reserve Banking Is That Bankers

question 79

Multiple Choice

An important effect of fractional reserve banking is that bankers have

• A)little control over total reserves.
• B)total control over the amount of lending in the economy.
• C)no control over the amount of reserves in the banking system.
• D)some discretion over the money supply.

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Definitions:

Scoria Cone

A type of volcanic cone formed from fragments of lava ejected from a single vent, typically with steep sides and a bowl-shaped crater.

Shield Volcano

A broad, gently sloping volcano built from highly fluid lava flows, often found in Hawaii and other Pacific regions.

Composite Volcano

A type of volcano built by the eruption of both lava flows and explosive material, resulting in a layered or composite structure, often found at convergent plate boundaries.

Volcanic Cinders

Small, porous fragments of lava that solidify before hitting the ground, typically ejected during explosive volcanic eruptions and forming cinder cones.