Question

#1. When a bank keeps $12 from a $100 deposit as legal reserves, it is using a. the Federal Reserve System. c. a legal reserve system. b. a fractional reserve system. d. a fractional deposit system. #2.The Fed has defined different categories of money, M1 and M2, according to the money's a. source. c. form. b. function. d. value. The real rate of interest:

Answer 1

For number one the correct answer is b.

Step-by-step explanation:

Answer 2

The right answer for the question that is being asked and shown above is that: " c. a legal reserve system. " When a bank keeps $12 from a $100 deposit as legal reserves, it is using a legal reserve system.

The right answer for the question that is being asked and shown above is that: "d. value." The Fed has defined different categories of money, M1 and M2, according to the money's value.