A fractional reserve banking system is one in which banks hold less than 100 percent of ________ in reserves.

Name: A fractional reserve banking system is one in which banks hold less than 100 percent of ________ in reserves.
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Question

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Fractional reserve banking means that banks only hold a fraction of deposits in reserve and lend out the remainder. Therefore, the answer is B, as banks hold less than 100 percent of deposits in reserves.

A Fractional Reserve Banking System Is One in Which Banks