Bank Depositors Will Not Lose Their Deposits in a Banking

question 41

Multiple Choice

Bank depositors will not lose their deposits in a banking panic if:

• A)there is fractional reserve banking.
• B)there is 100% reserve banking.
• C)there is a central bank.
• D)the actual reserve/deposit ratio equals the desired reserve/deposit ratio.

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Definitions:

Stakeholders

Individuals or groups that have an interest, stake, or investment in an organization and can affect or be affected by its operations.

Local Government

The administration of a specific area such as a city, town, or district, providing services and enforcing regulations at a community level.

Society

A large group of individuals who live together in a defined territory, sharing a common culture, institutions, and collective activities.

Free-market Capitalism

An economic system where prices for goods and services are determined by the open market and by consumers, with minimal government intervention.