Fractional reserve banking takes its name from the fact that banks
a. hold only a fraction of their reserves at the bank itself.
b. keep only a fraction of their total deposits on reserve.
c. lend only a fraction of their total reserves to customers.
d. reserve only a fraction of their activity for lending.
b
You might also like to view...
The supply curve shows the relationship between
A. the demand and supply schedules. B. price and quantity supplied. C. income and quantity supplied. D. quantity demanded and quantity supplied.
For a monopoly in long-run equilibrium, economic profits are likely to be
A. greater than zero. B. zero C. less than zero D. predatory
To the extent that a firm incurs an implicit cost of capital:
a. its economic profit will be less than its accounting profit. b. its accounting profit will be less than its economic profit. c. it will increase the optimal quantity to produce. d. it will earn more of its profit in the future and less in the present
Refer to the graph below. Which of the following statements about combination G is true?
A. The nation cannot produce combination G even if the nation gets additional resources
B. The nation can currently produce combination G if the nation specializes and trades with another nation
C. The nation may not be able to produce combination G, but it can consume that combination if it specializes and trades
D. The nation would much prefer to be at combination F than at combination G