The term fractional reserves refers to
A. The fact that reserves are split among many banks.
B. The ratio of required reserves to total loans.
C. The ratio of excess reserves to total loans.
D. Reserves being a small fraction of total transactions account balances.
Answer: D
You might also like to view...
A very high fixed cost and a relatively low marginal cost is associated with
A) every type of good or product. B) an information product. C) a persuasive good. D) an experience good.
Jim is haggling with a car dealer over the sale price of a used car. When he entered the store, the storekeeper was already haggling with the other customer. His bargaining position could get worse if
a. The customer leaves b. Another customer enters the store, interested in the car c. He gets an offer from another seller d. All of the above
An example of a renewable resource would be:
A. trees. B. oxygen. C. fish in the ocean. D. All of these are examples of renewable resources.
Public choice theory suggests politicians will be most likely to favor redistribution of income from
a. the rich to the poor. b. unorganized taxpayers to well-organized interest groups. c. middle-income taxpayers to both the rich and the poor. d. well-organized businesses and labor groups to consumers.