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:

Biological Factor

A contributing component of living organisms, such as genetic, neurological, or physiological conditions, that affect their functions or behaviors.

Serotonin

A neurotransmitter in the brain that regulates mood, appetite, and sleep, playing a key role in mental health and wellbeing.

Diagnosable Mental Disorder

A mental disorder that can be identified and classified based on standard criteria in a diagnostic manual, indicating significant psychological distress or impairment.

Probable

Likely to happen or be the case.