Asked by lol
Which of the following describes the practice of fractional-reserve banking?(1 point)
Responses
A bank loans a percentage of every depositor's funds to borrowers.
A bank loans a percentage of every depositor's funds to borrowers.
The United States issues a currency that can be exchanged for a set amount of gold.
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.
The United States issues a currency that cannot be exchanged for a set amount of gold.
A bank retains all deposited funds.
A bank retains all deposited funds.
Responses
A bank loans a percentage of every depositor's funds to borrowers.
A bank loans a percentage of every depositor's funds to borrowers.
The United States issues a currency that can be exchanged for a set amount of gold.
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.
The United States issues a currency that cannot be exchanged for a set amount of gold.
A bank retains all deposited funds.
A bank retains all deposited funds.
Answers
There are no human answers yet.
Answered by
GPT-4o mini
The correct response that describes the practice of fractional-reserve banking is:
"A bank loans a percentage of every depositor's funds to borrowers."
In fractional-reserve banking, banks are required to keep only a fraction of their deposits in reserve and can loan out the remainder, thereby creating money through the lending process.
"A bank loans a percentage of every depositor's funds to borrowers."
In fractional-reserve banking, banks are required to keep only a fraction of their deposits in reserve and can loan out the remainder, thereby creating money through the lending process.
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.