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Q: Why do banks retain a fractional reserve?
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The fractional reserve system allows the federal reserve to?

control state banks


What is fractional reserve banking?

Fractional-reserve banking is what keeps the banks running. They must keep a certain amount of money in reserve (usually in the form of a deposit with the central bank), so that people can withdrawal their deposits.


Why is fractional reserve banking system necessary?

To enable banks to loan out money to make a profit.


Why is a fractional reserve banking system necessary?

To enable banks to loan out money to make a profit


What is a banking system in which banks are only allowed to loan out some of their assets?

Fractional reserve system


What requirements banks must meet under a fractional reserve banking system?

banks must keep a specific percentage of deposits on hand.


What is a fractional reserve banking system?

The fractional reserve banking is necessary as it helps the banks satisfy the demands for withdrawals. It refers to the practice whereby a given bank holds reserves that are less than the amount of the deposits of their customers.


What is a fractional reserve banking system necessary?

The fractional reserve banking is necessary as it helps the banks satisfy the demands for withdrawals. It refers to the practice whereby a given bank holds reserves that are less than the amount of the deposits of their customers.


What statement accurately describes the requirements banks must meet under a fractional reserve banking system?

Banks must keep a specific percentage of deposits on hand. Apex Economics.


What describes a fractional reserve banking system?

A banking system in which banks keep a portion of deposits on hand to satisfy their customer's demands for withdrawals.


What statement best describes a fractional reserve banking system?

A banking system in which banks keep a portion of deposits on hand to satisfy their customer's demands for withdrawals.


Which of the following best describes a fractional reserve banking sysytem?

a bank system in which banks keep a portion of deposits on hand to satisfy their customer's demands for withdrawals