a fractional reserve banking system is one in which banks hold less than 100 percent of ______ as…

a fractional reserve banking system is one in which banks hold less than 100 percent of ______ as reserves.\n\na. deposits\nb. loans\nc. securities\nd. shareholder equity

a fractional reserve banking system is one in which banks hold less than 100 percent of ______ as reserves.\n\na. deposits\nb. loans\nc. securities\nd. shareholder equity

Answer

Brief Explanations:

In fractional reserve banking, banks keep a fraction (less than 100%) of deposits as reserves and can lend out the rest. Loans are what banks provide, securities are investments, and shareholder equity is related to ownership, none of which fit the reserve context here. So the correct option is A as reserves are based on deposits.

Answer:

A. deposits