Fractional reserve banking is the practice where a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities.
Answer: A: the time required for monetary policies to take effect
Explanation:
The impact lag also known as the response lag is the time it takes for corrective monetary and fiscal policies, designed to smooth out the economic cycle or respond to an adverse economic event, to affect the economy once they have been implemented.
For instance, during the last recession, several policies were introduced by the government to manage the situation . The time it takes for the citizens to feel the impact of these policies is known as the impact lag phase.
Answer:
the answer is D terms and conditions set forth in a lending agreement to reduce the probability of non-payment
Explanation:
covenants help lenders detect deteriorating loan quality.
