Banking Under a Fractional Reserve System Is Inherently Risky, but

question 103

Multiple Choice

Banking under a fractional reserve system is inherently risky, but

• A)safe if banks are allowed to make profits.
• B)regulation removes all danger of failures.
• C)is always safely done with modern management.
• D)is made safer with cautious and prudent management.

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Definitions:

Asci

Asci are sac-like structures found in ascomycete fungi where the spores, called ascospores, are produced during sexual reproduction.

Mycorrhizae

Mutualistic associations of fungi and plant roots that aid in the plant’s absorption of essential minerals from the soil. Hyphae of ectomycorrhizal fungi coat plant roots; those of endomycorrhizal fungi penetrate plant cell walls (see arbuscules).

Ascospores

Sexual spores produced within the ascus of ascomycete fungi during the sexual phase of their life cycle.

Zygospores

Thick-walled resting spores formed by the union of two morphologically similar or dissimilar haploid cells, commonly found in fungi and some protists.