Answers CHS Economics BankingQuestion 9

9

AssignmentMultiple Choice

Banking

Question 9 • CHS Economics

Which of these scenarios best describes fractional reserve banking?

Answer

A

Maria makes a deposit of $20,000, and the bank loans $18,000 to Mark so he can buy a car

B

Jamir makes a $1,000 deposit and then withdraws it one week later.

C

Isabella splits her $5,000 deposit between two different banks.

D

A bank manager trades old, worn $20 bills for new currency issued by the Federal Reserve.

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