in a fractional - reserve banking system, a bank does not make loans. does not accept deposits. keeps only a…

in a fractional - reserve banking system, a bank does not make loans. does not accept deposits. keeps only a fraction of its deposits in reserve. none of the above is correct.

in a fractional - reserve banking system, a bank does not make loans. does not accept deposits. keeps only a fraction of its deposits in reserve. none of the above is correct.

Answer

Brief Explanations:

In a fractional - reserve banking system, banks accept deposits and make loans. They keep only a fraction of the deposits as reserves and lend out the rest. This allows for money creation and is a fundamental aspect of modern banking.

Answer:

C. keeps only a fraction of its deposits in reserve