alleryMatch reserve role: 1. Part: p. Fraction 2. Cash: q. Reserves 3. Run: r. Protection
A1-p, 2-q, 3-r
B1-p, 2-r, 3-q
C1-q, 2-p, 3-r
D1-r, 2-p, 3-q
Answer & Solution
Correct answer: A. 1-p, 2-q, 3-r
Under fractional reserve banking, banks hold a small percentage of assets as cash reserves against bank runs.
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