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Which of these scenarios best describes fractional reserve banking?

-Maria makes a deposit of $20,000, and the bank loans $18,000 to Mark so he can buy a car

-Jamir makes a $1,000 deposit and then withdraws it one week later.

-Isabella splits her $5,000 deposit between two different banks.

-A bank manager trades old, worn $20 bills for new currency issued by the Federal Reserve.

Respuesta :

Maria makes a deposit of 20,000 and the bank loans 18,000 to Mark so he can buy a car is the right answer I just took it.

The scenario that best described fractional reserve banking is Maria makes a deposit of $20,000, and the bank loans $18,000 to Mark so he can buy a car.

What is fractional reserve banking?

Fractional banking is a form of banking where a portionof customer's deposits is kept with the Central Bank as reserves. The excess of deposits over reserves can be given out as loans.

To learn more about fractional banking, please check: https://brainly.com/question/12417681

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