Fractional reserve banking can be thought of as a bank
A) withholding a portion of its total deposits that are not loaned out.
B) holding deposits equal to its net worth.
C) paying a fraction of its profit to depositors.
D) loaning out all of its reserves.
Answer: A) withholding a portion of its total deposits that are not loaned out.
Economics
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a. 18.7 percent b. 21.3 percent c. 25.6 percent d. 29.9 percent
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