A system in which depository institutions hold reserves that are less than the amount of total deposits is

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Fractional reserve banking is a system in which banks are required to hold only a fraction of their customers' deposits as reserves, and they can lend out the remainder. This system allows banks to create new money through the process of lending and has been adopted by most countries around the world. A, B, and C are not related to this system.

A System in Which Depository Institutions Hold Reserves That Are