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Under a fractional reserve banking system, banks are required to a. keep part of their demand deposits as reserves b. expand the money supply when requested by the central bank c. insure their deposits against losses and bank runs d. pay a fraction of their interest income in taxes e. A correct answer scores 2; an incorrect answer scores 0. State Bank of India is maintaining account in Japanese Yen with American Express Bank, Tokyo. Title: Monetary Economics Multiple Choice Questions And Answers Author: learncabg.ctsnet.org-Leah Blau-2020-09-03-08-40-12 Subject: Monetary Economics Multiple Choice Questions And Answers Indicate all of your answers to the multiple-choice questions on the Asian Clearing Union. Multiple choice format with a difficulty level … This activity contains 15 questions. 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