What is meant by the term "fractional reserve banking"?
A) A system whereby banks keep only a fraction of their assets in the form of cash.
B) A system whereby banks keep only a fraction of their cash with the central bank.
C) A system whereby banks keep only a fraction of their total deposits in the form of cash.
D) A system whereby banks must maintain a minimum amount of loans in the form of cash reserves.
Correct Answer:
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