The purpose of fractional reserve banking is to:

Answers

Answer 1

Answer: See explanation

Explanation:

Fractional Banking refers to a banking system whereby banks hold a fraction of the deposits that's made to them.

The purpose of fractional-reserve banking is that it allows the provision of credit by the banks which then brings about liquidity to the depositors. Also, it should be noted that the banks provide loans to borrowers, thereby acting as dinancial intermediaries to the funds.


Related Questions

Describe two things you should consider as you’re planning a story.

Answers

Answer:

You should consider

- Your target audience

- What you want your audience to get from the story

- What character growth will happen that you want to show

- What you want to happen in the story plot wise

Hope that helps and have a good day!

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