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Galina-37 [17]
2 years ago
12

Which of the following accurately describes the requirements banks must

Law
1 answer:
zlopas [31]2 years ago
7 0

Answer:

A. Banks must keep a specific percentage of deposits on hand.

Explanation:

Fractional reserve banking is known to be a system whereby bank deposits of a fraction are actually backed the cash on hand which is usually available for withdrawal. In the fractional reserve banking, banks re required to keep a certain amount of deposits on hand. This deposit on hand is known as bank's reserves. actually, banks are not required to keep the entire amount on hand.  

Option A is the correct answer.

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