In a Fractional Reserve Banking System,banks

Multiple Choice

In a fractional reserve banking system,banks

A) can lend all of the deposits that are received.
B) have to purchase gold that has the value of the deposits received.
C) must deposit all cash from depositors with the Federal Reserve.
D) face the risk of not having enough cash to meet withdrawal needs.
E) have to deposit all cash from depositors in their own bank vault.