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.

Question

Alisa Morgan

English

14 May, 19:24

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.

+2

Answers (2)

Know the Answer?

Alf · Answer 1

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

Elaine Campos · Answer 2

the answers D

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,