Table 21-5. -Refer to Table 21-5.From the Table It Follows That the It

question 342

Multiple Choice

Table 21-5.

-Refer to Table 21-5.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.