In a fractional reserve banking system,
A. the fraction of deposits that must be held is determined by the required reserve ratio.
B. the required reserve ratio is set by the Federal Reserve System.
C. banks hold reserves equal to only a fraction of their deposits.
D. All of these responses are correct.
Answer: D
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A positive real interest rate indicates
a. how fast the number of dollars in your savings account is rising over time. b. how fast the purchasing power of your savings account is rising over time. c. the number of dollars in your savings account today. d. the purchasing power of your savings account today.
All of the following are considered a barrier to entry into a market EXCEPT
A. government licenses. B. governmental regulations of business conduct relating to workplace conditions. C. lowering tariffs. D. persistent declining long-run average costs as output increases.