An Important Effect of Fractional Reserve Banking Is That Bankers

question 79

Multiple Choice

An important effect of fractional reserve banking is that bankers have

• A)little control over total reserves.
• B)total control over the amount of lending in the economy.
• C)no control over the amount of reserves in the banking system.
• D)some discretion over the money supply.

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Definitions:

Psychic Epidemics

Phenomena in which a certain behavior or mindset spreads rapidly and widely among a population, influencing the collective psychological state.

Social Psychology

The scientific study of how people's thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Psychoactive Substances

Chemical substances that, when taken, alter brain function, resulting in temporary changes in perception, mood, consciousness, and behavior.

Excited Insanity

A state of extreme mental agitation and hyperactivity often leading to irrational or dangerous behavior, sometimes seen in psychiatric emergencies.