Describe the fractional reserve banking system
What will be an ideal response?
Banks hold a portion of deposits in required reserves lending out the excess reserves. The loans generated return to the banking system in the form of deposits at which time the process of holding a portion in required reserves and lending out the excess continues.
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A bond issuer agrees to pay a stated nominal amount each year. An increase in the nominal interest rate will cause
A) the price of the bond to fall. B) the price of the bond to rise. C) the nominal value of the bond's coupon to rise. D) the nominal value of the bond's coupon to fall.
Rapid and sustained economic growth of nations:
A. Started around the time of Jesus B. Started a few centuries before the time of Jesus C. Was triggered by the establishment of the Roman Empire in the first millennium A. Started around the time of Jesus B. Started a few centuries before the time of Jesus C. Was triggered by the establishment of the Roman Empire in the first millennium D. Is a relatively modern phenomenon