In a System with Fractional-Reserve Banking

question 110

Multiple Choice

In a system with fractional-reserve banking:

• A) all banks must hold reserves equal to a fraction of their loans.
• B) no banks can make loans.
• C) the banking system completely controls the size of the money supply.
• D) all banks must hold reserves equal to a fraction of their deposits.

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Definitions:

Explicitly Converted

Refers to the process of manually converting a data type into another data type in programming, also known as type casting.

Basic Rule Of Testing

Ensures that a software application or system behaves as expected under specified conditions, typically involving validation and verification processes.

Header Files

Code files included at the beginning of a source file in programming, providing access to external functions and variables.

#include Statement

A preprocessor directive used in C and C++ programming languages that tells the compiler to include a file or library in the program before compilation.