which of the following statements is true concerning a fractional reserve banking system?

NetherCraft 0

a) a fractional reserve banking system only is operational when gold and silver are used as currency.

b) by law banks must loan out a fraction of the deposits they receive.

c) in this system fraction of the banks receive deposits and the remaining fraction make loans.

d) banks maintain a fraction of deposits on hand to meet the daily needs of their customers.

2 Answers

  • I agree. D.

  • D

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