What Do We Mean in Our Current Banking System When

question 115

Multiple Choice

What do we mean in our current banking system when we say that a currency is "fractionally backed"?

• A)Banks have many more claims outstanding against them than they have reserves available to pay those claims.
• B)The currency is partially backed by the nation's supply of gold.
• C)A bank's currency is fractionally backed by its supply of gold.
• D)All paper currency is convertible to gold.
• E)Banks maintain a fixed fraction of their outstanding deposits as cash deposits with the central bank.

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Definitions:

Employee

An individual who is hired by an organization or person to perform work under specific terms in exchange for compensation.

Grievance Procedures

Formal processes that allow employees to voice complaints or concerns regarding work conditions, treatment, or policies.

Arbitration

A process of dispute resolution in which an impartial third party, known as an arbitrator, makes a decision to resolve a dispute between two or more parties, often used as an alternative to litigation.

Excessively Legal

Refers to a situation or approach heavily reliant on legal frameworks or actions, often to an extreme or unnecessary degree.