What is a fractional reserve banking system? How long has the fractional reserve banking system been in existence?
What will be an ideal response?
A fractional reserve banking system is a system in which depository institutions hold reserves that are less than the amount of total deposits. They have been in existence at least 2,500 years.
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In the long run in a monopolistic competitive industry,
a. economic profits will be positive. b. price will be driven to zero. c. the firm will not operate where MR = MC. d. economic profit will be zero. e. price will exceed average cost.
According to the Stolper-Samuelson theorem, a price change that reduces a country's production of its exportable product would
A. reduce the returns to the factor of production used intensively in the export industry. B. raise the returns to all factors of production within the country. C. reduce the returns to the factor of production used intensively in the import-competing industry. D. reduce the returns to all factors of production within the country.