Any Bank That Uses Deposits to Make Loans

question 155

Multiple Choice

Any bank that uses deposits to make loans

• A)operates on a 100 percent reserve system
• B)operates on a fractional reserve system
• C)does not operate on a reserve system
• D)does not keep reserves
• E)charges an interest rate determined by the reserve ratio

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Definitions:

Neural Activity

Refers to the electrical and chemical processes that occur within the brain and nervous system to enable thought, perception, and action.

Activation-synthesis Theory

A theory that suggests dreams are the result of the brain's attempt to make sense of random neural activity during sleep.

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells.

Pons

A part of the brainstem that links the medulla oblongata and the thalamus, playing a crucial role in controlling breathing, communication between different parts of the brain, and sensations such as hearing, taste, and balance.