Fractional Reserve Banking Is a Term Used to Describe a Banking

Multiple Choice

Fractional reserve banking is a term used to describe a banking system whereby

A) individual banks share a fraction of the total funds deposited in the whole banking system.
B) banks are required to quote interest rates in fractions.
C) banks hold reserves equal to only a fraction of their deposit liabilities.
D) banks hold reserves equal to a multiple of their deposit liabilities; that is,fractional in this case really means multiple.
E) banks are required to maintain a certain fraction of their deposits in the form of checkable deposits,a certain fraction of their deposits in the form of savings deposits,etc.