Fractional reserve banking is the system that
A) allows banks not to insure their deposits.
B) allows banks not to join the Federal Reserve System.
C) limits banks' activities from crossing state lines.
D) allows banks to keep smaller reserves than their deposits.
D
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A country with negative net exports has a trade surplus
a. True b. False Indicate whether the statement is true or false
Answer the following statement true (T) or false (F)
1) Average fixed costs diminish continuously as output increases. 2) Economic profit is found by subtracting accounting costs from total revenue. 3) A firm's economic profit is usually higher than its accounting profit. 4) The law of diminishing returns explains why short-run marginal cost curves are upsloping. 5) The law of diminishing returns explains diseconomies of scale.