asked 25.5k views
0 votes
How does the practice of fractional reserve banking affect banks?

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

asked
User SelvirK
by
9.3k points

2 Answers

4 votes
the answer to this question is C, i think :)
5 votes
C.it ensures that banks always have cash reserves equal to their total deposits
answered
User Yaroslawww
by
7.5k points
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