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A fractional reserve banking system: A. prevents the Federal Reserve from influencing the money supply. B. is susceptible to bank "panics" or "runs." C. prevents money creation through the lending process.
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A fractional reserve banking system:

A. prevents the Federal Reserve from influencing the money supply.
B. is susceptible to bank "panics" or "runs."
C. prevents money creation through the lending process.
D. only tends to exist in developing economies.

User Kapso
by
7.2k points

2 Answers

1 vote

Answer:

C

Step-by-step explanation:

User Qwertford
by
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5 votes

Answer:

C. prevents money creation through the lending process.

Step-by-step explanation:

User Lawiusz
by
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