In a System with Fractional-Reserve Banking

question 110

Multiple Choice

In a system with fractional-reserve banking:

• A) all banks must hold reserves equal to a fraction of their loans.
• B) no banks can make loans.
• C) the banking system completely controls the size of the money supply.
• D) all banks must hold reserves equal to a fraction of their deposits.

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Machiavellianism

A personality trait that involves manipulation and exploitation of others, a lack of morality, and a focus on self-interest and deception.

Conscientiousness

A personality trait characterized by diligence, organization, dependability, and a strong sense of duty.

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A political system characterized by strong central power and limited political freedoms.