In the Fractional Reserve Banking System

question 15

Multiple Choice

In the fractional reserve banking system

• A)only a fraction of bank assets at any one time may be used to create money.
• B)only a fraction of a bank's liabilities must be held as reserves to meet withdrawals at any one time.
• C)a bank receives only a fraction of the reserve it needs at any given time.
• D)All of the choices are correct.

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