Fractional Reserve Banking Takes Its Name from the Fact That

question 132

Multiple Choice

Fractional reserve banking takes its name from the fact that banks

• A)hold only a fraction of their reserves at the bank itself.
• B)keep only a fraction of their total deposits on reserve.
• C)lend only a fraction of their total reserves to customers.
• D)reserve only a fraction of their activity for lending.

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Definitions:

Accretionary Prism

A geological structure formed by the accumulation of sediments scraped off a subducting tectonic plate at a convergent boundary.

Strike-Slip Fault

A type of fault where the movement of the Earth's crust is predominantly horizontal, parallel to the fault's strike direction.

Fold and Thrust Belt

Regions of the Earth's crust that have been subjected to compression, leading to the formation of folded and thrusted layers of rock.

Passive Margin

The transition between oceanic and continental crust which is not an active plate boundary, often characterized by sediment accumulation.