The Fractional Reserve Lending Theory of Money Creation States That

question 6

Multiple Choice

The fractional reserve lending theory of money creation states that loans are made primarily based on:

• A) Interest rates
• B) Riskiness of business projects
• C) Credit scores
• D) Deposits

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Definitions:

Socially Constructed

A concept or practice that exists not because of an inherent natural reality but because people agree to behave as if it exists or follow certain conventions.

Race

A socially constructed category of identification based on physical characteristics, ancestry, historical affiliation, or shared culture.

Representation

involves the act of depicting or symbolizing someone or something in particular ways, often in politics, media, or arts.

Group Identification

The psychological process by which individuals align themselves with particular social groups, adopting the group's norms, values, and behavior.