Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
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Question
Chapter 15, Problem 6AA
To determine
To choose: The suitable word that best completes the sentence.
Expert Solution & Answer
Explanation of Solution
The suitable word that best completes the sentence is portion.
Fed has set specific reserve requirements for banks. Banks has to hold certain percentage of their deposits as cash. The remaining portion or the reserves can be used by the banks for lending purposes. When the banks have maintained the amount of deposits required, and still deposits remain with the banks that do not need to be reserved, it can be used for making more lending.
Economics Concept Introduction
Introduction:
Fractional reserve banking- The banking system in the United States is based on a fractional reserve banking system. Fed has set some specific reserve requirements for banks since 1913. In this system, a small fraction of the deposits is kept in hand in a bank and the remaining or reserve is available for lending.
Chapter 15 Solutions
Economics Today and Tomorrow, Student Edition
Ch. 15.1 - Prob. 1RCh. 15.1 - Prob. 2RCh. 15.1 - Prob. 3RCh. 15.1 - Prob. 4RCh. 15.2 - Prob. 1RCh. 15.2 - Prob. 2RCh. 15.2 - Prob. 3RCh. 15.2 - Prob. 4RCh. 15.2 - Prob. 5RCh. 15.3 - Prob. 1R
Ch. 15.3 - Prob. 2RCh. 15.3 - Prob. 3RCh. 15.3 - Prob. 4RCh. 15.3 - Prob. 5RCh. 15 - Prob. 1AACh. 15 - Prob. 2AACh. 15 - Prob. 3AACh. 15 - Prob. 4AACh. 15 - Prob. 5AACh. 15 - Prob. 6AACh. 15 - Prob. 7AACh. 15 - Prob. 8AACh. 15 - Prob. 9AACh. 15 - Prob. 10AACh. 15 - Prob. 11AACh. 15 - Prob. 12AACh. 15 - Prob. 13AACh. 15 - Prob. 14AACh. 15 - Prob. 15AACh. 15 - Prob. 17AACh. 15 - Prob. 18AACh. 15 - Prob. 19AACh. 15 - Prob. 20AA
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