A Banker Operating Under a System of Fractional Reserves

question 28

Multiple Choice

A banker operating under a system of fractional reserves

• A)is exposed to potential bank runs.
• B)must keep a prudent level of reserves.
• C)must lend money carefully.
• D)All of the above are correct.

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Definitions:

Federal Supplement

A series of law reports containing the decisions of Federal District Courts in the United States.

Citation

A reference to a legal authority, such as a case, statute, or legal treatise, used in legal documents.

Western District

A term often used to designate a geographic division in a state or country for judicial or administrative purposes.

Michigan

A state in the United States located in the Great Lakes region, known for its extensive freshwater coastline and automotive manufacturing industry.