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Feliz [49]
3 years ago
9

The main feature of fractional reserve banking is that banks:

Business
1 answer:
Klio2033 [76]3 years ago
5 0

Answer:

c) keep a portion of deposits in reserves but lend out the rest.

Explanation:

Fractional reserve banking -

It is the system , where the fraction of the bank deposits are backed by the actual cash money on hand and is for the withdrawal purpose .  

This helps to expand economy of the country , by lending more .  

The bank reserves certain amount with itself and the rest amount is given for the lending purpose .

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