The Type of Banking System Under Which Banks Are Required

question 37

Multiple Choice

The type of banking system under which banks are required to hold only a portion of their assets in reserve against the checking deposits of their customers is called

• A) a gold-backed banking system.
• B) a full reserve banking system.
• C) a fiat banking system.
• D) a fractional reserve banking system.

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Definitions:

Itemized Deductions

Potential reductions to income allowed for certain payments made during the tax year.

Taxable Income

The portion of one's income that is subject to taxes, determined by subtracting allowable deductions and exemptions from the gross income.

Taxable Income

The amount of an individual's or corporation's income that is subject to taxes, after deductions and exemptions.

Standard Deduction

A fixed amount that reduces the income on which you are taxed, which the IRS allows taxpayers to subtract from their gross income to reduce taxable income.