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laila [671]
3 years ago
9

The fractional banking system _____.

Social Studies
2 answers:
Olin [163]3 years ago
4 0

Answer:

ensures growth in the economy

Explanation:

The fractional banking system occurs in most capitalist countries, such as the US. Basically, this system allows banks to make loans and investments in excess of what is held by account holders' deposits. The Central Bank regulates this activity and requires only a portion of deposits to be held as collateral, giving banks the prerogative to lend the rest of the money to stimulate the economy through credit. Credit is an essential type of financing for economic development, so the fractional banking system stimulates the economy to function well.

andreev551 [17]3 years ago
3 0

Answer : The fractional banking system ensures growth in the economy - A.

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What is the best way to explain why Russia, Germany, and France got involved after Austria-Hungary declared war on Serbia
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Threatened by Serbian ambition in the tumultuous Balkans region of Europe, Austria-Hungary determined that the proper response to the assassinations was to prepare for a possible military invasion of Serbia. After securing the unconditional support of its powerful ally, Germany, Austria-Hungary presented Serbia with a rigid ultimatum on July 23, 1914, demanding, among other things, that all anti-Austrian propaganda within Serbia be suppressed, and that Austria-Hungary be allowed to conduct its own investigation into the archduke’s killing. Though Serbia effectively accepted all of Austria’s demands except for one, the Austrian government broke diplomatic relations with the other country on July 25 and went ahead with military preparedness measures. Meanwhile, alerted to the impending crisis, Russia—Serbia’s own mighty supporter in the Balkans—began its own initial steps towards military mobilization against Austria.

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Explanation:

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