Which of the following best describes a fractional reserve banking system?
O
A. A banking system in which net worth is calculated by subtracting
a fraction of liabilities from assets.
O
B. A banking system in which a large portion of the bank's assets are
digital money rather than bills and coins.
O
C. A banking system in which banks have only partial control over the
interest rates they charge on loans.
O
D. A banking system in which banks keep a portion of deposits on
hand to satisfy their customer's demands for withdrawals.
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