The Fractional Reserve Banking System Refers to a System in Which

question 197

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 loans.

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Definitions:

Hierarchy Of Needs

In Maslow’s theory, the order in which human needs demand attention.

External "Press"

Environmental factors or social pressures that influence an individual's behavior or choices.

Trait Approach

A perspective in psychology that focuses on identifying and measuring individual personality characteristics that are thought to be relatively stable over time.

Personality Category

A classification within a theoretical framework for grouping individuals based on shared psychological traits or characteristics.