In a System of 100-Percent-Reserve Banking,the Purpose of a Bank

question 12

Multiple Choice

In a system of 100-percent-reserve banking,the purpose of a bank is to

• A)make loans to households.
• B)influence the money supply.
• C)give depositors a safe place to keep their money.
• D)buy and sell gold.

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Definitions:

Organic Products

Compounds predominately containing carbon and hydrogen, which may also include oxygen, nitrogen, and other elements, usually resulting from organic reactions.

Thermodynamic

The branch of physics that deals with the relationships and conversions between heat and other forms of energy.

Kinetic

Relating to or involving the motion of objects and the forces associated with them.

Resonance Structures

Different Lewis structures for the same molecule that depict possible distributions of electrons, illustrating delocalization within the molecule.