Explain the Need for Restricting Banks to Lending Out Only

question 35

Essay

Explain the need for restricting banks to lending out only 90 percent of their deposit funds.

---

Definitions:

Mixture

A physical combination of two or more substances that retain their own identities and properties and can be separated by physical means.

Compound

A substance made up of two or more different elements chemically bonded together in a fixed ratio.

Alloy

A mixture of metals or a mixture of a metal and another element, achieved through melting and mixing.