A Fractional Reserve Banking System Is a System Whereby

A fractional reserve banking system is a system whereby

A) banks keep at least 100 percent of their deposits on hand as reserves.
B) banks keep only a fraction of their deposits on hand as reserves.
C) a central bank tells all banks what fraction of the population they can serve.
D) banks specialize so that one type of bank handles one kind of deposit and another type of bank handles another type of deposit.