The purpose of fractional reserve banking is to:

Advanced Placement (AP)

1 answer:

irga5000 [103]3 years ago

5 0

Answer: See explanation

Explanation:

Fractional Banking refers to a banking system whereby banks hold a fraction of the deposits that's made to them.

The purpose of fractional-reserve banking is that it allows the provision of credit by the banks which then brings about liquidity to the depositors. Also, it should be noted that the banks provide loans to borrowers, thereby acting as dinancial intermediaries to the funds.

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Answer:

The description of the given question is described in the explanation section below.

Explanation:

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3 years ago

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Naily [24]

Answer:

Explanation:

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