asked 225k views
4 votes
In the united states, the fractional reserve policy that governs commercial banking is controlled by the ______________.

1 Answer

1 vote
In the united states, the fractional reserve policy that governs commercial banking is controlled by the Federal Reserve. Fractional reserve is a part of customer deposit that cannot be channeled as a loan for a debtor.
This policy made to maintain commercial bank's liquidity. Thus, it will not collapse when a customer withdraw some amount from the deposit
answered
User Mise
by
8.0k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.