Under a Fractional Reserve Banking System

question 193

Multiple Choice

Under a fractional reserve banking system

• A) banks keep a fraction of their deposits on hand as reserves.
• B) banks keep a fraction of their reserves on hand as deposits.
• C) banks keep all of their deposits on hand as reserves.
• D) banks keep all of their reserves on hand as deposits.

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Definitions:

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Dwight Eisenhower

The 34th President of the United States, serving from 1953 to 1961, known for his leadership during World War II as a five-star general.

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A group of senior government officials, typically heads of departments or agencies, who advise the head of state or head of government.