Question

Which of the following describes the practice of fractional-reserve banking?

A bank loans a percentage of every depositor's funds to borrowers.
A bank retains all deposited funds.
The United States issues a currency that can be exchanged for a set amount of gold.
The United States issues a currency that cannot be exchanged for a set amount of gold.
A bank loans a percentage of every depositor's funds to borrowers describes the practice of fractional-reserve banking.

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