A Bank's Assets Equal Its Liabilities Under

question 3

Multiple Choice

A bank's assets equal its liabilities under

• A)both 100-percent-reserve banking and fractional-reserve banking.
• B)100-percent-reserve banking but not under fractional-reserve banking.
• C)fractional-reserve banking but not under 100-percent-reserve banking.
• D)neither 100-percent-reserve banking nor fractional-reserve banking.

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Definitions:

Fiduciary Relationship

A legal relationship wherein one party has the duty to act in another's best interests in matters over which they hold a trust or confidence.

Director

A member of the board of directors of a company who is responsible for participating in the decision-making processes regarding the company's management.

Officer Of The Corporation

A high-level management official within a corporation, usually appointed by the board of directors, responsible for day-to-day operations and implementing corporate policies.

Shareholder's Loan

Money lent to a corporation by its shareholders, which is sometimes considered a part of the equity of the business.