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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If stock exchanges did not exist,
a. the risk to the investor of buying stocks would be much greater. b. the economy's resources could be more efficiently allocated among firms. c. there would be no organized way for firms to issue stock. d. investment banks would no longer play a role in handling stocks.
If you purchased shares of common stock in 1990 for $1,000 and sold them for $2,000 in 2001 you would be liable for taxes on
a. $2,000. b. $1,000 less the rate of inflation. c. $1,000. d. $2,000 less the rate of inflation.
Gross domestic product is calculated by adding together
A. the number of goods and services produced in the economy. B. money value of final goods and services. C. number of workers employed in national production. D. all commodities but not services produced in the economy.
The Solow growth model indicates that the growth rate of real GDP per worker depends partly on the saving rate.
a. true b. false