If There Were No Fractional Reserve Banking

question 93

Multiple Choice

If there were no fractional reserve banking:

• A) the reserve ratio would be zero percent.
• B) banks would not create money in the economy.
• C) a very small amount of lending using deposits would occur.
• D) account holders would not be able to withdraw their money in times of recession.

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Definitions:

Value

A specific piece of data, often numerical, representing the magnitude, quantity, or importance of a variable or parameter in a process or calculation.

Source

The origin from which something comes, such as electricity in an electrical circuit, or data in an information system.

Destination

The term Destination in the context of automation and control systems refers to the target location or variable where data or control signals are directed.

Stored Value

A stored value refers to a quantity or information that is saved or retained in a storage system or medium for future use.