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.
B. A banking system in which banks have only partial control over the
interest rates they charge on loans.
C. A banking system in which a large portion of the bank's assets are
digital money rather than bills and coins.
D. A banking system in which banks keep a portion of deposits on
hand to satisfy their customer's demands for withdrawals.

Question

06-02-2021
Law

Answered

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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.
B. A banking system in which banks have only partial control over the
interest rates they charge on loans.
C. A banking system in which a large portion of the bank's assets are
digital money rather than bills and coins.
D. A banking system in which banks keep a portion of deposits on
hand to satisfy their customer's demands for withdrawals.

Sagot :

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