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Fractional reserve banking
The Federal Reserve sets the reserve requirement, which banks must meet through deposits at the Fed and cash held at the bank. What do these requirements achieve? Check all that apply.
They help to facilitate transfers of funds between banks when a customer from one bank writes a check to a customer of another.
They mean that a bank must have one dollar of deposits for every dollar it lends.
They help to control the money supply.
They help to prevent bank runs by reassuring the public that banks will not make too many loans and run out of cash.
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