The Type of Banking System Under Which Banks Are Required

question 37

Multiple Choice

The type of banking system under which banks are required to hold only a portion of their assets in reserve against the checking deposits of their customers is called

• A) a gold-backed banking system.
• B) a full reserve banking system.
• C) a fiat banking system.
• D) a fractional reserve banking system.

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Definitions:

Corporate Actors

Organizations and companies that, when viewed as single entities, play significant roles in socio-economic and political arenas, influencing policies and market dynamics.

James Coleman

An American sociologist whose work significantly contributed to educational sociology, social theory, and the study of social capital.

Positivist Orientation

An approach in social science that emphasizes the use of empirical evidence and scientific methods to understand and explain social phenomena.

Exchange Theory

A social psychological and sociological perspective that explains social change and stability as a process of negotiated exchanges between parties.