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MMLU / Having a fractional reserve banking system means that

Problem

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question

Having a fractional reserve banking system means that

choices

  1. no single loan can be larger than 20 percent of the bank’s holdings
  2. the central bank reserves the right to audit any bank at any time
  3. the central bank holds a certain fraction of GDP on reserve at all times
  4. a bank cannot lend out all of its deposits

subject

high_school_macroeconomics

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Source and history

Official source

initial import