The concept of holding reserves, such as gold, that are less than the value of the total deposits
A) is known as fractional reserve banking.
B) has been illegal since the passage of the Financial Services Modernization Act of 1999.
C) is known as non-credit banking.
D) None of the above are correct.
A) is known as fractional reserve banking
You might also like to view...
In the United States the poorest 20 percent of households receive about ________ of total income
A) 1 percent B) 4 percent C) 10 percent D) 15 percent
If the desired reserve ratio rises, the money multiplier
A) decreases. B) increases. C) stays the same. D) probably changes but more information is needed to determine if it increases or decreases.
John Maynard Keynes disagreed with the classical economists because he believed that
A) wages and prices adjust slowly. B) international trade plays a major role in the macroeconomy. C) government intervention in the economy cannot reduce business cycles. D) unemployment will be eliminated quickly by the invisible hand of the market.
A more efficient process for refining oil into gasoline is developed. As a result, the market price of gasoline: a. and the quantity of gasoline purchased both increase
b. increases and the quantity of gasoline purchased falls. c. decreases and the quantity of gasoline purchased rises. d. decreases and the demand curve for gasoline shifts to the right.