The practice of fractional-reserve banking is best described as when the bank loans a percentage of every depositor's funds to borrowers.
The Fractional reserve banking is a system where the banks hold some fraction of the customers' deposit as reserves and the rest are used to generate returns in the form of interest rates on loans.
The United States banking system practices the fractional reserve banking because its allows the commercial banks to get interest on customer's deposits with them
Therefore, the Option is D because the practice is best described as when the bank loans a percentage of every depositor's funds to borrowers.
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