CAT Questions

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Most modern banking systems are based on Fractional reserves.

Fractional-reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities. Reserves are held as currency in the bank, or as balances in the bank's accounts at the central bank.

1. In a fractional reserve banking system banks can create money through the lending process.

2. A fractional reserve banking system is susceptible to bank panics.

3. Bank panics are a risk of fractional reserve banking, but are unlikely when banks are highly regulated and lend prudently.

Let p be the required number of days.

From the given data,

12 x 14 = 12 x 5 + (12+3) x p 

12 x 14 = 12[5 + 3p]

14 = 5 + 3p

3p = 9

p = 3 days.

Hence, more 3 days all of them take to complete the remaining work.

By simplifying, we get 4/3

Let initially milk and water in container B is 3x liter and x liter respectively

Now, 3x + (8/9) × 18 – x – (1/9) × 18 = 30

3x + 16 – x – 2 = 30

x = 8

Initial quantity is container B = 8 (3 + 1) = 32 Liter.

THE QUICK BROWN FOX JUMPS OVER THE LAZY DOG.