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

Quizplus · Accepted Answer

Fractional reserve banking system is a system in which banks keep only a fraction of deposits as reserves and lend out the rest. Therefore, the correct answer is B, as banks hold less than 100 percent of deposits in reserves.

A Fractional Reserve Banking System Is One in Which Banks