Which of these scenarios best describes fractional reserve banking?
-Maria makes a deposit of $20,000, and the bank loans $18,000 to Mark so he can buy a car
-Jamir makes a $1,000 deposit and then withdraws it one week later.
-Isabella splits her $5,000 deposit between two different banks.
-A bank manager trades old, worn $20 bills for new currency issued by the Federal Reserve.
Answers (2)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which of these scenarios best describes fractional reserve banking? -Maria makes a deposit of $20,000, and the bank loans $18,000 to Mark ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The equilibrium price and quantity of a good are found where the supply and demand curves intersect. a. trueb) false
Answers (1)
Which of the following changes would represent an austerity measure? Choose one or more: A. a decrease in the number of public workers, to reduce government expenses B. an increase in the number of public workers, to reduce government expenses C.
Answers (1)
Why should you sort mail into categories before presenting it to the executive?
Answers (1)
The natural rate of unemployment a. is an artificially low rate that cannot be maintained. b. is a constant rate that is unaffected by changes in public policy. c. is the rate of unemployment present when the economy is operating at full employment.
Answers (1)
Most mutual funds obtain funds by issuing securities, then lend the funds to individuals and small businesses. a. True b. False
Answers (1)
New Questions in Business
Which of the following is an example of pretexting? A. A person accessing your email account without permission B. A person stealing a credit card bill from your mailbox C. A retailer scanning your credit card to steal its number D.
Answers (1)
If the price of a product increases, then the budget line rotates and the optimal quantity demanded, which corresponds to the higher price, decreases.
Answers (1)
Jack and Jill have a tenancy in common in an apartment building. After ten years of ownership, Jill dies unexpectedly. On Jill's death, Jill's interest in the property will: a. pass to Jack as tenant in common. b. pass to Jill's heirs. c.
Answers (1)
If the u. s. government increases the deficit and federal debt, what happens to the value of the u. s. dollar?
Answers (1)
Why are imports considered as a leakage factor? A. Imports do not generate domestic income. B. Domestic industry loses ground as imports increase. C. Imports are taxed heavily, which is a secondary leakage factor. D.
Answers (1)