The fractional banking system _____.
(A) Prevents excessive defaults.
(B) Makes banking more secure.
(C) Only works if there are a limited number of banks.
(D) Ensures growth in the economy.
Ans: (D) Ensures growth in the economy.
You might also like to view...
The graph shows the market for ski chalets in Aspen. The Aspen Tourist Board asks the local government to impose a rent ceiling on ski chalets. If the rent ceiling is set at $1,900 a week, then there is
A) a shortage of 3,000 chalets a week. B) a surplus of 3,000 chalets a week. C) neither a shortage nor surplus of chalets. D) a shortage of 6,000 chalets a week. E) a surplus of 6,000 chalets a week.
Why do economists tend to create models in diagrammatic form?
a. Diagrams hide reality, and theory is an attempt to avoid reality. b. It is easier than building models out of physical objects. c. Economic reality cannot possibly be represented except in diagrams. d. Most economists are frustrated artists, and like to draw when possible. e. All of the above are correct.