Multiple Choice
What does fractional reserve banking take its name from?
A) the fact that banks reserve only a fraction of their activity for lending
B) the fact that banks lend only a fraction of their total reserves to customers
C) the fact that banks hold only a fraction of their reserves at the bank itself
D) the fact that banks keep only a fraction of total deposits on reserve
Correct Answer:

Verified
Correct Answer:
Verified
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