The fractional reserve system allows the federal reserve to:
a.
control state banks
c.
control interest rates
b.
create extra deposit money
d.
regulate the amount that member banks can borrow

The correct answer is C.

The fractional reserve system consists on the establishment of a reserve ratio. This ratio is expressed as a percentage/fraction of the total amount of deposits held by the bank and it sets that such proportion of all deposits has to be backed by money in cash, ready if customers come to the bank. The rest of the money deposited can be used to issue loans to third parties, and this is how the banking system creates money, by channelling funds from saver's deposits to loan demandants.

the correct answer is ) possibility.

demonstrating opportunity cost is done through production possibility.

the opportunity cost can be demonstrated using the production possibility frontier or curve. this graphic shows the total number of possibilities for two products when we have the resources needed and used in an efficient manner. the main resources could be money, labor, and technology. the curve shows that the production of one good increases when the production of the othe