What percentage of the money that a typical modern bank invests comes from borrowing?
A) about 50 percent
B) about 33 percent
C) about 75 percent
D) about 95 percent

Question

Quizplus · Accepted Answer

Modern banks typically operate on a fractional reserve basis, meaning they keep a small fraction of deposits on hand as reserves and lend out the majority. This means that a significant portion of the money they invest or lend out comes from borrowing, often around 90% or more, making option D (about 95 percent) the most accurate.

What Percentage of the Money That a Typical Modern Bank