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

Answer 1

The answer is D, because they can only keep a portion due to its location.

Answer 2

the answers D

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,