An Argument in Favor of 100 Percent Reserve Banking Is

Multiple Choice

An argument in favor of 100 percent reserve banking is that

A) a bank deposit is owned by the depositor, so the bank has no legal right to lend the deposit to someone else.
B) banks should be allowed to lend deposits in order to increase their profits and strengthen the banking system.
C) unregulated institutions would be riskier than regulated fractional-reserve banks.
D) it would limit the precision of the central bank's control over the quantity of money.