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20 votes
20 votes
How does the practice of fractional reserve banking affect banks?

O A. It allows banks to keep only a small percentage of their deposits
in reserve.
O B. It gives banks the freedom to change interest rates on loans at any
time.
C. It ensures that banks always have cash reserves equal to their
total deposits.
D. It prevents banks from profiting off loans they provide with
deposited funds.
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User Sweety Bertilla
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2 Answers

24 votes
24 votes
the answer to this question is C, i think :)
User OnTheInternet
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18 votes
18 votes
C.it ensures that banks always have cash reserves equal to their total deposits
User Noah Bogart
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