« previous next »

Author Question: What is a fractional reserve system?[br][br][b][color=black]Question 2[/color][/b][br][br]Which of ... (Read 17 times)

tth

  • Hero Member
  • *****
  • Posts: 579
on: Jun 30, 2018
What is a fractional reserve system?

Question 2

Which of the following economic theories became popular in the 1930s in response to the shortcomings of existing theories of the Great Depression?
 a. New classical theory
  b. Classical theory
  c. Traditional Keynesian theory
  d. Monetarist theory
  e. New Keynesian theory


peter

  • Sr. Member
  • ****
  • Posts: 330
Reply #1 on: Jun 30, 2018
Answer to Question 1

In order for banks to continue to do business in an orderly fashion and for depositors to have access to their deposits, the banks are required by law to keep cash on hand and reserves at the Federal Reserve in proportion to their checkable deposits. Banks must keep adequate cash reserves on hand to meet the needs of customers who wish to convert their checkable deposits into currency or spend them on goods or services.

Answer to Question 2

c


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The people with the highest levels of LDL are Mexican American males and non-Hispanic black females.

Did you know?

According to animal studies, the typical American diet is damaging to the liver and may result in allergies, low energy, digestive problems, and a lack of ability to detoxify harmful substances.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

World map of the distribution of skin color. World map of the distribution of skin color.
Outline of the System That Controls Drinking Outline of the System That Controls Drinking
Disorders of or Associated with the Lymphatic System Disorders of or Associated with the Lymphatic System
Endocrine System Endocrine System
Coat color in mice Coat color in mice
Video: Mechanisms of capillary exchange (transcytosis & bulk flow)

For a complete list of videos, visit our video library