A System That Permits Banks to Hold Less Than 100

question 103

Multiple Choice

A system that permits banks to hold less than 100 percent of their deposits as reserves is called a

• A) federal reserve system.
• B) fractional reserve banking system.
• C) partially funded deposit insurance system.
• D) gold standard banking system.

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Definitions:

International Dispute

A disagreement or conflict that arises between two or more nations over matters of principle or interest.

National Security Policy

Strategies and policies implemented by a country to protect its national interests and maintain public safety.

Political Integrity

The adherence to ethical standards and principles in political practices, including honesty, fairness, and accountability in governance.

Independence

The condition of a nation, state, or individual being free from control, influence, support, aid, or the like, of others.