Bank panics:
A. occur frequently in fractional reserve banking systems.
B. are a risk of fractional reserve banking but are unlikely when banks are highly regulated
and lend prudently.
C. cannot occur in a fractional reserve banking system.
D. occur more frequently when the monetary system is backed by gold.
B. are a risk of fractional reserve banking but are unlikely when banks are highly regulated
and lend prudently.
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Without an accepted medium of exchange, people
A) have to specialize in one area of production. B) have to resort to barter in order to exchange goods and services. C) have to rely on gold or silver in order to exchange goods and services. D) can efficiently obtain goods and services.
If the growth rate of population is greater than a nation's growth rate of real GDP, then its real GDP per person
A) falls. B) rises. C) does not change. D) might rise, fall, or not change. E) cannot be measured.