Fractional-Reserve Banking Depends on the Assumption That

question 36

Multiple Choice

Fractional-reserve banking depends on the assumption that

• A) not all depositors will withdraw their deposits at the same time.
• B) most banks will have assets that outweigh liabilities.
• C) banks generally make more sound investments than poor investments.
• D) at least a portion of the currency, though not all, is backed by gold.
• E) the FDIC insures all bank loans up to $100,000.

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Definitions:

Myopia

A common vision condition also known as nearsightedness, where objects far away appear blurry while close objects can be seen clearly.

Objects Clearly

The capacity to see or perceive things with clarity and sharpness.

Close Range

A short distance between two points or objects, often used in reference to shooting or photography where the subject is near the shooter or the camera.

Retinoblastoma

A rare form of eye cancer that typically affects young children, originating from the retina at the back of the eye.