Answered

Explore Westonci.ca, the leading Q&A site where experts provide accurate and helpful answers to all your questions. Explore thousands of questions and answers from knowledgeable experts in various fields on our Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Question 10 of 10
How does the practice of fractional reserve banking affect banks?
A. It allows banks to keep only a small percentage of their deposits in
reserve.
B. It ensures that banks always have cash reserves equal to their
total deposits.
C. It gives banks the freedom to change interest rates on loans at any
time.
D. It prevents banks from profiting off loans they provide with
deposited funds.

Sagot :

writernine9

Answer:

A. It allows banks to keep only a small percentage of their deposits in

reserve.

Explanation:

Fractional reserve banking allows banks to only hold fraction deposits as reserve and use most of it to gain interests as loans.

We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.