When a bank keeps $12 from a $100 deposit as legal reserves, it is using

a. the Federal Reserve System.

c. a legal reserve system.

b. a fractional reserve system.

d. a fractional deposit system.

Question

Twiggy

Social Studies

27 January, 14:09

When a bank keeps $12 from a $100 deposit as legal reserves, it is using

a. the Federal Reserve System.

c. a legal reserve system.

b. a fractional reserve system.

d. a fractional deposit system.

+3

Answers (1)

Know the Answer?

Kylan · Answer 1

The correct answer for the question that is being presented above is this one: "b. a fractional reserve system." When a bank keeps $12 from a $100 deposit as legal reserves, it is using a fractional reserve system. It is the practice whereby a bank accepts deposits, makes loans or investments, and holds reserves that are a fraction of its deposit liabilities

When a bank keeps $12 from a $100 deposit as legal reserves, it is usinga. the Federal Reserve System.c. a legal reserve system.b. a fractional reserve system.d. a fractional deposit system.

When a bank keeps $12 from a $100 deposit as legal reserves, it is using

a. the Federal Reserve System.

c. a legal reserve system.

b. a fractional reserve system.

d. a fractional deposit system.