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Question
A fractional reserve banking system is a system whereby
A) banks keep at least 100 percent of their deposits on hand as reserves.
B) banks keep only a fraction of their deposits on hand as reserves.
C) a central bank tells all banks what fraction of the population they can serve.
D) banks specialize so that one type of bank handles one kind of deposit and another type of bank handles another type of deposit.
Answer
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Related questions
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If the marginal product curve is intersecting the average product curve, we know thatA) the average variable cost curve is intersecting the average total cost curve.B) the marginal cost curve is intersecting the average fixed cost curve. C) the average total cost curve lies above the marginal cost curve.D) the marginal cost curve is intersecting the average total cost curve.
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Why?
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