In a Fractional-Reserve Banking System,a Bank

question 55

Multiple Choice

In a fractional-reserve banking system,a bank

• A)does not make loans.
• B)does not accept deposits.
• C)keeps only a fraction of its deposits in reserve.
• D)None of the above is correct.

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Definitions:

Economic Systems

Organized ways in which countries manage their resources and distribute goods and services within their societies.

Principles

Fundamental truths or propositions that serve as the foundation for a system of belief or behavior or for a chain of reasoning.

Economic Growth

An increase in the production of goods and services in an economy over a period, often measured by the rise in Gross Domestic Product (GDP).

Environmental Preservation

The practice of safeguarding natural resources and ecosystems to maintain biodiversity and ecological health, often involving protection from pollution and overexploitation.