Responses
The United States issues a currency that can be exchanged for a set amount of gold.
The United States issues a currency that can be exchanged for a set amount of gold.
A bank retains all deposited funds.
A bank retains all deposited funds.
The United States issues a currency that cannot be exchanged for a set amount of gold.
The United States issues a currency that cannot be exchanged for a set amount of gold.
A bank loans a percentage of every depositor's funds to borrowers.
1 answer
The correct description of the practice of fractional-reserve banking is:
A bank loans a percentage of every depositor's funds to borrowers.
Fractional-reserve banking allows banks to hold only a fraction of deposits in reserve while loaning out the remainder, which is a key aspect of how they create money in the economy.
7 answers
1 answer
1 answer
1 answer