The United States Has a ________, Which Means That a Bank

question 25

Multiple Choice

The United States has a ________, which means that a bank must hold or "reserve" some portion of the funds that savers deposit in a form approved by the Fed.

• A) fractional reserve banking system
• B) required reserve ratio
• C) total reserves
• D) excess bank reserves

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Definitions:

Crop Rotation

A farming practice that involves growing different types of crops in the same area across a sequence of seasons to improve soil health and reduce pest and weed pressure.

Fordism

An industrial production system pioneered by Henry Ford, characterized by large-scale manufacturing of standardized products using assembly line technology and specialized labor.

Mass Production

The manufacturing of large quantities of standardized products, often using assembly lines or automated technology.

Henry Ford

An American industrialist and founder of the Ford Motor Company, known for revolutionizing the automobile industry with mass-production techniques.