Fractional Reserve Banking Takes Its Name from the Fact That

question 7

Multiple Choice

Fractional reserve banking takes its name from the fact that:

• A)banks hold only a fraction of their reserves at the bank itself.
• B)banks keep only a fraction of total deposits on reserve.
• C)banks lend only a fraction of their total reserves to customers.
• D)banks reserve only a fraction of their activity for lending.
• E)banks reserve only a fraction of their cash for teller usage.

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