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ludmilkaskok [199]
3 years ago
8

Maria makes a deposit of $10,000 into her Smalltown Bank savings account. Smalltown Bank holds 20% of her deposit, then lends th

e remaining $8,000 to Ben to buy a new car. This practice of retaining only a portion of deposits on hand is called ________.
a. the gold standardb. fractional reserve bankingc. the Federal Reserve systemd. representative money
Business
1 answer:
zloy xaker [14]3 years ago
3 0

Answer: Fractional reserve banking

Explanation:

Fractional-reserve banking is a common form of banking that is practised by commercial banks worldwide. It involves banks in every part of the world. Fractional reserve banking is the acceptance of deposits from customers and then making loans to borrowers, while the reserve a fraction of the deposit liabilities of the bank is held.

From the question, Maria makes a deposit of $10,000 into the savings account she uses at Smalltown Bank and the bank holds 20% of the deposit she made and later lends the remaining $8,000 to another customer is an example of fractional reserve banking.

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<h3>How employment is determined by political or personal relationships?</h3>
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1 year ago
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a. Top management is expected to take a global perspective. - With a global perspective we mean that the top management must develop its strategies taking into account socioeconomic factors not only of the country where they belong but of the world, since in a multinational company it could affect externalities that occur in any part of the world.

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<h3>What is coverture?</h3>

Coverture was a legal doctrine in the English common law in which a married woman's legal existence was considered to be merged with that of her husband, so that she had no independent legal existence of her own.

Therefore, the correct answer is as given above

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