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A fractional reserve banking system: A. prevents the Federal Reserve from influencing the money supply. B. is susceptible to bank "panics" or "runs." C. prev…

A fractional reserve banking system: A. prevents the Federal Reserve from influencing the money supply. B. is susceptible to bank "panics" or "runs." C. prev…
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4 votes
A fractional reserve banking system:

A. prevents the Federal Reserve from influencing the money supply.
B. is susceptible to bank "panics" or "runs."
C. prevents money creation through the lending process.
D. only tends to exist in developing economies.

asked
User Kapso
by
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2 Answers

1 vote

Answer:

C

Step-by-step explanation:

answered
User Qwertford
by
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5 votes

Answer:

C. prevents money creation through the lending process.

Step-by-step explanation:

answered
User Lawiusz
by
8.5k points
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