What does a "fractional reserve banking system" mean?
(A) One that must keep most deposited money in reserve.
(B) One that uses fractional paper currency as well as coins.
(C) One that keeps only a small part of customers' deposits on hand.
(D) One that is required to report daily deposits to the Federal Reserve.
Ans: (C) One that keeps only a small part of customers' deposits on hand.
You might also like to view...
The above table shows the short-run total product schedule for the campus book store. What is the marginal product (MP) of going from 5 to 6 employees at the book store?
A) 83 books sold B) 13.83 books sold C) 10 books sold D) between 11 and 14 books sold
Modern work in economic history by people like Robert Fogel (1964) and Albert Fishlow (1965) shows
(a) that railroads were the indispensable key to rapid economic growth in the 19th century. (b) that the levels of Gross National Product (GNP) reached in 1890 would have been reached in 1880 had it not been for reckless railroad speculation. (c) that less than 5% of the country's late 19th-century economic growth was attributable to railroads. (d) none of the above.