Why do the depository institutions have the fractional reserve banking?A.Because they can keep a large amount of deposits from their depositors in the form. of reserves.B.Because most of their depositors would withdraw their deposits.C.Because only a smal

题目

Why do the depository institutions have the fractional reserve banking?

A.Because they can keep a large amount of deposits from their depositors in the form. of reserves.

B.Because most of their depositors would withdraw their deposits.

C.Because only a small fraction of their depositors would deposit money during a day or week.

D.Because they can meet the need of withdrawing of their depositors and make investments in other financial assets.


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