Banking under a fractional reserve system is inherently risky, but

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Banking under a fractional reserve system is inherently risky because banks lend out more money than they have in reserves. However, with cautious and prudent management, banks can minimize the risks associated with fractional reserve banking. While profits may be important for banks, they are not a guarantee of safety, and regulation can only do so much to mitigate the risks. Therefore, D is the best choice as it acknowledges the inherent risk in the system but also recognizes the importance of prudent management to make it safer.

Banking Under a Fractional Reserve System Is Inherently Risky, but