Table 16-5. -Refer to Table 16-5. from the Table It Follows That

question 267

Multiple Choice

Table 16-5.
-Refer to Table 16-5. From the table it follows that the Bank of Pleasantville operates in a

• A)fractional-reserve banking system, since its reserves are less than its deposits.
• B)fractional-reserve banking system, since its reserves are less than its loans.
• C)100-percent-reserve banking system, since its assets are equal to its liabilities.
• D)100-percent-reserve banking system if the Fed's reserve requirement is 10 percent; otherwise, it operates in a fractional-reserve banking system.