Fractional reserve banking

(a) destroys money.
(b) requires banks to engage in 100 percent of total banking activities.
(c) allows banks to create money while requiring them only to hold a fraction of money.
(d) all of the above.

(c)

Economics

You might also like to view...

Investment spending is countercyclical

Indicate whether the statement is true or false

Economics

The actions produced by arm muscles but NOT by leg muscles are __________.

Fill in the blank(s) with the appropriate word(s).

Economics