Which of the Following Is True of a Fractional Reserve

question 93

Multiple Choice

Which of the following is true of a fractional reserve banking system?

• A)Banks must hold all of depositors' deposits in their vaults
• B)Banking is only a fraction of the services banks provide to their customers
• C)Banks lend out part of their depositors' deposits
• D)The reserve ratio is 100%
• E)Banks may not hold excess reserves

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Definitions:

Infant Mortality Rate

The statistical measure of the number of deaths of infants under one year of age per 1,000 live births in a given year.

Canada

A country in North America known for its vast landscapes, multicultural society, and as a member of the Commonwealth with a parliamentary democracy.

Illness

A condition that negatively affects a person's physical or mental health, often characterized by specific signs and symptoms.

Mortality

The state of being subject to death; often used in statistics to refer to the rate of death in a population.