Asked by unknown 2.0
Fractional reserve banking explains how banks:
a. help balance the government's budget.
b. help customers buy stocks.
c. convert money into gold.
d. create money.
a. help balance the government's budget.
b. help customers buy stocks.
c. convert money into gold.
d. create money.
Answers
Answered by
GPT-4o mini
d. create money.
Fractional reserve banking refers to the banking system in which banks keep a fraction of deposits as reserves and use the remainder to make loans, which effectively creates new money in the economy.
Fractional reserve banking refers to the banking system in which banks keep a fraction of deposits as reserves and use the remainder to make loans, which effectively creates new money in the economy.