A Fractional Reserve Banking System Is a System Whereby

question 498

Multiple Choice

A fractional reserve banking system is a system whereby

• A) banks keep at least 100 percent of their deposits on hand as reserves.
• B) banks keep only a fraction of their deposits on hand as reserves.
• C) a central bank tells all banks what fraction of the population they can serve.
• D) banks specialize so that one type of bank handles one kind of deposit and another type of bank handles another type of deposit.

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Definitions:

Malicious Prosecution

An intentional tort designed to protect against the wrongful initiation of criminal proceedings.

Civil Suit

A legal action taken by one individual against another in a court of law, typically over disputes or claims that do not involve criminal charges.

Remedy

Legal means or methods available to a party to enforce a right or compensate for the violation of a right under the law.

Battery

A criminal offense involving the unlawful physical acting upon a threat, distinct from assault which is the act of creating apprehension of such contact.