61. Fractional reserve banking is a term used to describe a banking system whereby O Banks...

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61. "Fractional reserve banking" is a term used to describe a banking system whereby O Banks hold reserves equal to a multiple of their demand deposit liabilities. Banks are required to quote interest rates in fractions. Banks hold reserves equal to only a fraction of their demand deposits liabilities based on a reserve ratio. O Individual banks share a fraction of the total funds deposited in the whole banking system. 61. "Fractional reserve banking" is a term used to describe a banking system whereby O Banks hold reserves equal to a multiple of their demand deposit liabilities. Banks are required to quote interest rates in fractions. Banks hold reserves equal to only a fraction of their demand deposits liabilities based on a reserve ratio. O Individual banks share a fraction of the total funds deposited in the whole banking system.

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Answer Correct option is C Banks hold reserves equal to only a fraction of their demand depo... View the full answer