Social Studies High School

Which of the following describes the practice of fractional-reserve banking? (1 point)
The United States issues a currency that cannot be exchanged for a set amount of gol
The United States issues a currency that can be exchanged for a set amount of gold.
A bank retains all deposited funds.
O A bank loans a percentage of every depositor's funds to borrowers.

Which Of The Following Describes The Practice Of Fractional-reserve Banking? (1 Point)The United States

Answers

Answer 1

The practice of fractional-reserve banking is best described as when the bank loans a percentage of every depositor's funds to borrowers.

The Fractional reserve banking is a system where the banks hold some fraction of the customers' deposit as reserves and the rest are used to generate returns in the form of interest rates on loans.

The United States banking system practices the fractional reserve banking because its allows the commercial banks to get interest on customer's deposits with them

Therefore, the Option is D because the practice is best described as when the bank loans a percentage of every depositor's funds to borrowers.

Learn more about Fractional reserve banking here

brainly.com/question/25239575

Answer 2

Answer:

a bank loans a percentage of every depositor's funds to borrowers

Explanation:

took the test!

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