Deteriorating Neighborhoods Attract Law Violators; This Is Known as the Relative

question 16

True/False

Deteriorating neighborhoods attract law violators; this is known as the relative deprivation hypothesis.

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Definitions:

Deposits

Money placed into a financial institution for safekeeping, which can earn interest over time.

Loans

Sums of money borrowed that are expected to be paid back with interest over a specified period.

100 Percent Reserve

A banking system where banks hold reserves equal to 100% of their deposit liabilities, meaning all deposits can be fully backed by liquid assets, reducing the risk of bank runs.

Fractional Reserve System

A banking system in which only a fraction of bank deposits are backed by actual cash on hand and available for withdrawal.