An Argument in Favor of 100 Percent Reserve Banking Is

question 573

Multiple Choice

An argument in favor of 100 percent reserve banking is that

• A) a bank deposit is owned by the depositor, so the bank has no legal right to lend the deposit to someone else.
• B) banks should be allowed to lend deposits in order to increase their profits and strengthen the banking system.
• C) unregulated institutions would be riskier than regulated fractional-reserve banks.
• D) it would limit the precision of the central bank's control over the quantity of money.

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The branch of physics that deals with the relationships between heat and other forms of energy, and the laws governing the conversion of heat into work.