In the Fractional Reserve Banking System

question 8

Multiple Choice

In the fractional reserve banking system:

• A)half of the total money supply is held in reserves as currency
• B)a fraction of the total money supply is held in reserves as currency.
• C)an amount equal to the total money supply is held in reserves as currency.
• D)no fraction of the total money supply is held in reserves as currency.

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Definitions:

Alternative Dispute Resolution

is a collective term for methods of resolving disputes outside the judicial process, such as arbitration or mediation.

Litigation

The process of taking legal action or resolving disputes in court; involves a plaintiff filing a lawsuit against a defendant to seek judgments or damages.

Speed and Cost

Considerations in decision-making, focusing on how quickly actions can be taken and the expenses involved.

Private Trial

An ADR method in which a referee is selected and paid by the disputing parties to offer a legally binding judgment in a dispute.