The Concept of Holding Reserves, Such as Gold, That Are

question 443

Multiple Choice

The concept of holding reserves, such as gold, that are less than the value of the total deposits

• A) is known as fractional reserve banking.
• B) has been illegal since the passage of the Financial Services Modernization Act of 1999.
• C) is known as non-credit banking.
• D) None of the above are correct.

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Definitions:

Conservation

In cognitive development, the understanding that certain properties of an object or substance remain the same even when its appearance is altered, typically developed during the concrete operational stage.

Conservation

In cognitive psychology, the concept that children learn that quantity, length, or number remain the same despite changes in appearance or form.

Object Permanence

The understanding in human development that objects continue to exist even when they cannot be seen, heard, or touched.

Egocentric

A term referring to the inability or difficulty in understanding a perspective other than one's own.