Question

Which of the following best describes a fractional reserve banking system?

O A. A banking system in which net worth is calculated by subtracting
a fraction of liabilities from assets.
B. A banking system in which a large portion of the bank's assets are
digital money rather than bills and coins.
C. A banking system in which banks have only partial control over the
interest rates they charge on loans.
D. A banking system in which banks keep a portion of deposits on
hand to satisfy their customer's demands for withdrawals.
SUBMIT

Answer 1

D. A banking system in which banks keep a portion of deposits on

hand to satisfy their customer's demands for withdrawals.

Step-by-step explanation:

Fractional-reserve banking is the most common form of banking practiced by commercial banks worldwide. It involves banks accepting deposits from customers and making loans to borrowers,