Social Studies
sourlemonade10
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When a bank keeps $12 from a $100 deposit as legal reserves, it is using a. the Federal Reserve System. c. a legal reserve system. b. a fractional reserve system. d. a fractional deposit system.

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FlorineCrayton

The correct answer for the question that is being presented above is this one: "b. a fractional reserve system." When a bank keeps $12 from a $100 deposit as legal reserves, it is using a fractional reserve system. It is the practice whereby a bank accepts deposits, makes loans or investments, and holds reserves that are a fraction of its deposit liabilities

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