Question: Question 6: One of the key differences between a fractional-reserve banking system and a 100-percent-reserve banking system is in a 100-percent-reserve banking system, banks

$Question 6: One of the key differences between a fractional-reserve banking system$ and a 100-percent-reserve banking system is in a 100-percent-reserve banking system, banks

and a 100-percent-reserve banking system is in a 100-percent-reserve banking system, banks

Question 6: One of the key differences between a fractional-reserve banking system and a 100-percent-reserve banking system is in a 100-percent-reserve banking system, banks only keep a fraction of deposits as reserve, while banks in a fractional reserve banking system keep all deposits as reserves. in a fractional reserve banking system banks are prohibited from loaning reserves, while banks in a 100-percent-reserve banking system are required to loan reserves. There are no important differences between the two banking systems. in a fractional reserve banking system, banks only keep a fraction of deposits as reserve, while banks in a 100-percent-reserve banking system keep all deposits as reserves. D Question 30 Banks create money in: O neither a 100-percent-reserve banking system nor a fractional-reserve banking system. a fractional-reserve banking system but not in a 100-percent-reserve banking system. both a 100-rcent-reserve banking system and a fractional-reserve banking system. O a 100-percent-reserve banking system but not in a fractional-reserve banking system. 4

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