A Fractional Reserve Banking System Is One in Which Banks

question 2

Multiple Choice

A fractional reserve banking system is one in which banks hold less than 100 percent of ________ in reserves.

• A)loans
• B)deposits
• C)securities
• D)shareholder equity

---

Definitions:

Confabulation

The production of fabricated, distorted, or misinterpreted memories about oneself or the world, without the conscious intention to deceive.

Imagined Event

A scenario or occurrence that is created in the mind but has not actually happened in reality.

Explicit Memory

A type of long-term memory that involves conscious recollection of specific facts and events.

Conscious Recollection

The process of intentionally remembering or recalling information from one's past.