Choose the Statement That Is Incorrect

question 52

Multiple Choice

Choose the statement that is incorrect.

• A)Fractional-reserve banking is a system in which banks keep a fraction of their depositors' funds as a cash reserve and lend the rest.
• B)Fractional-reserve banking was invented by gold prospectors in the Canadian Yukon during the gold rush.
• C)100 percent reserve banking is a system in which banks keep the full amount of their depositors' funds as a cash reserve.
• D)The requirement to hold 100 percent reserves lowers bank profits.
• E)The Austrian School of economists say that fractional-reserve banking violates property rights because the bank has no legal right to lend a deposit to someone else.

Grasp the significance of efficiency and resource allocation in an economy.

Comprehend how changes in unemployment affect the economy's production capabilities.

Recognize how consumer preferences can influence the economy's production decisions.

Understand the factors leading to economic disparities between countries.

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Definitions:

Disparate-Impact Discrimination

Discrimination that results from certain employer practices or procedures that, although not discriminatory on their face, have a discriminatory effect.

Protected Class

A group of persons protected by specific laws because of the group’s defining characteristics, including race, color, religion, national origin, gender, age, and disability.

Adversely Affected

This refers to being negatively impacted or harmed by an event or action.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature in the workplace or learning environment that violates the victim's rights and well-being.