If First National Banks checkable deposits exceed actual res

If First National Bank\'s checkable deposits exceed actual reserves, it is known as ..

If First National Bank\'s checkable deposits exceed actual reserves, it is known as Select one: a. 100% reserve banking o b. Fractional reserve banking O C. Fractional deposits o d. None of the above

Solution

The correct answer should be A. The entire reserve share is being exhausted. This is thus referred to as 100% reserve banking. The correct answer is A.