Which of these scenarios best describes fractional reserve banking?
-Maria makes a deposit of $20,000, and the bank loans $18,000 to Mark so he can buy a car
-Jamir makes a $1,000 deposit and then withdraws it one week later.
-Isabella splits her $5,000 deposit between two different banks.
-A bank manager trades old, worn $20 bills for new currency issued by the Federal Reserve.
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Home » Business » Which of these scenarios best describes fractional reserve banking? -Maria makes a deposit of $20,000, and the bank loans $18,000 to Mark so he can buy a car -Jamir makes a $1,000 deposit and then withdraws it one week later.