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Question 7 of 10 How does fractional reserve banking increase the money supply? O A. By automatically converting foreign currencies into U.S. dollars on deposit O B. By guaranteeing that all deposits are
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Question 7 of 10

How does fractional reserve banking increase the money supply?
O A. By automatically converting foreign currencies into U.S. dollars on
deposit
O B. By guaranteeing that all deposits are held in reserve as cash at all
times
O C. By using deposited money to make loans without reducing the
value of the deposits
O D. By giving banks the authority to print their own money in an
economic emergency
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User John London
by
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2 Answers

4 votes

Answer:

c

Step-by-step explanation:

User BugCracker
by
4.8k points
1 vote

Answer: C. By Using deposited money to make loans without reducing the value of the deposits

Step-by-step explanation:

A.P.E.X

User Marat
by
4.9k points
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