The Type of Banking System Under Which Banks Are Required

question 37

Multiple Choice

The type of banking system under which banks are required to hold only a portion of their assets in reserve against the checking deposits of their customers is called

• A) a gold-backed banking system.
• B) a full reserve banking system.
• C) a fiat banking system.
• D) a fractional reserve banking system.

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Definitions:

Conflict Resolution

A process of resolving disagreements between parties by addressing their differences and coming to an agreeable solution.

Recognition

The acknowledgment or appreciation of an individual's achievements, efforts, or qualities, often used as a form of motivation.

Developed

Refers to countries or regions that have a high level of industrialization, a strong economy, and generally high living standards.

Felt Conflict

The personal perception or experience of being in conflict, which can differ from the actual existence of a conflict situation.