The Idea That Banks Hold Only a Portion of Deposits

question 186

Multiple Choice

The idea that banks hold only a portion of deposits and lend the rest out is called the:

• A) fractional reserve banking system.
• B) partial banking system.
• C) double-entry bookkeeping system.
• D) loan-maximization system.

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Definitions:

Greatest Good

A principle aiming at the highest benefit or outcome for the greatest number of individuals, often used in ethical decision-making.

Ethical Leadership

A leadership approach that is guided by respect for ethical beliefs and values, and for the dignity and rights of others, aiming to foster an ethical culture within the organization.

Public Failing

Visible or widely recognized errors or shortcomings in performance or behavior, especially by individuals in positions of influence or power.

Ethical Leadership

A leadership approach that is guided by respect for ethical beliefs and values, and for the dignity and rights of others.