Fractional reserve banking takes its name from the fact that: a. ...

[berenicecastro]

Fractional reserve banking takes its name from the fact that:
 a. banks hold only a fraction of their reserves at the bank itself.
  b. banks keep only a fraction of total deposits on reserve.
 c. banks reserve only a fraction of their activity for lending.
  d. all of the above

Question 2

The interest rate represents the opportunity cost of holding non-monetary assets.
 a. True
  b. False
  Indicate whether the statement is true or false

[stallen]

Answer to Question 1

b

Answer to Question 2

False

[berenicecastro]

Correct answers!

[stallen]

Great! Please up vote