When We Say That the Canadian Banking System Is Fractional

question 184

Multiple Choice

When we say that the Canadian banking system is fractional reserve system, it means:

• A)chartered banks loan out only a small fraction of their deposits.
• B)chartered banks have to keep a large percentage of their deposit to meet everyday cash withdrawals.
• C)chartered banks loan out the entire deposits and do not have to meet their everyday cash withdrawal.
• D)chartered banks loan out most of their deposits, keeping only a small percentage of their deposits to meet everyday cash withdrawals.

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Definitions:

Independent Variable

A variable in an experiment or study that is manipulated or controlled by the researcher to investigate its effect on a dependent variable.

Slope

The measure of the steepness or incline of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Dependent Variable

A variable in an experiment or model whose changes depend on the effects of other variables.