An Important Effect of Fractional Reserve Banking Is That

question 84

Multiple Choice

An important effect of fractional reserve banking is that:

• A)​bankers' choices about how much to lend can affect the money supply.
• B)​the commercial banking system has complete control over total reserves.
• C)​bankers always turn every dollar of excess reserves into loans.
• D)​a new bank deposit allows a bank to extend loans of the same amount to borrowers.

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Definitions:

Smooth Muscle

A type of muscle found in the walls of internal organs, such as the stomach and blood vessels, that contracts involuntarily.

Calcium-Calmodulin Complex

A complex formed when calcium ions bind to the protein calmodulin, playing a key role in various cellular processes.

Myofibrils

The basic rod-like unit of a muscle cell, composed of sarcomeres, which are responsible for the muscle's contractile properties.

Sarcomeres

The basic contractile units of muscle fiber, defined by the region between two Z lines, responsible for muscle contraction.