The Fractional Reserve Banking System Refers to a System in Which

question 69

Multiple Choice

The fractional reserve banking system refers to a system in which banks:

• A) hold reserves equal to a fraction of their deposit liabilities.
• B) keep 100% of their liabilities always on reserve.
• C) forbid the removal of more than a fraction of demand deposits per day.
• D) keep only a fraction of each person's demand deposits.

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Definitions:

NullPointerException

An exception thrown in Java when an application attempts to use an object reference that has the null value, indicating that no object has been assigned to the reference.

Preorder Traversal

A way of traversing a tree data structure where each node is visited before its child nodes in a top-down, left-right manner.

Binary Search Tree

A binary tree data structure where each node has at most two children, arranged such that for every node, all elements in the left subtree are less, and in the right subtree are greater.

Head Node

The first node in a linked list or other linear data structure, serving as the entry point for accessing elements of the list.