If the Fractional Reserve System Did Not Exist

question 55

Multiple Choice

If the fractional reserve system did not exist,

• A) the banking system could not create money.
• B) there would be no effect on the ability of the banking system to create money.
• C) banks would loan out its required reserves.
• D) banks would be highly susceptible to bank runs.
• E) the banking system would realize the money multiplier.

---

Definitions:

Readability

The ease with which a reader can understand written text, influenced by factors such as layout, font size, and writing style.

Typeface

The design and style of a set of characters, including letters, numbers, and symbols, often used in printing and digital media.

Spacing

The amount of white space between text, objects, or other elements in a document or visual presentation.

Color

A property of light as seen by people, typically categorized by names like red, blue, or green.