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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 SelvirK
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2 Answers

4 votes
the answer to this question is C, i think :)
User Christoph Walesch
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5 votes
C.it ensures that banks always have cash reserves equal to their total deposits
User Yaroslawww
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