Mathematics, 03.08.2021 04:40 luna163
Which of the statements about"fractional reserve" banking are correct?
I. Fractional reserve banking relies on not everyone withdrawingtheir money at the same time.
II. Fractional reserve banking allows banks to create money throughthe lending process.
III. Fractional reserve banking does not allow banks to hold excessreserves.
IV. Fractional reserve banking allows banks to create additionalwealth by lending some reserves.
a. II and III only
b. I and II only
c. I, II, and IV only
d. I, II, III, and IV
Answers: 1
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Which of the statements about"fractional reserve" banking are correct?
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