Fractional reserve banking has three crucial features: bank profitability, bank discretion over the money supply, and bank exposure to runs

a. True
b. False
Indicate whether the statement is true or false


True

Economics

You might also like to view...

Competition between banks

A) encourages greater risk taking. B) encourages conservative bank management. C) increases bank profitability. D) eliminates the need for government regulation.

Economics

The Federal Reserve is

A) a Kentucky bourbon. B) a wild game preserve. C) an express mail service. D) the central bank of the United States.

Economics

Which of the following goods would be likely to be bought in the same quantity even if it doubled in price?

a) shoes b) telephones c) pencils d) computers

Economics

Why did the USSR collapse and China succeed? Explain

What will be an ideal response?

Economics