2 years ago

Which of the following best describes a fractional reserve banking system?

History

1 answer:

TEA [102]2 years ago

5 0

Answer:

D. A banking system in which banks keep a portion of deposits on

hand to satisfy their customer's demands for withdrawals.

Explanation:

Fractional-reserve banking is the most common form of banking practiced by commercial banks worldwide. It involves banks accepting deposits from customers and making loans to borrowers,

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