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15-1 Which of the following correctly describes fractional reserve banking?A) the federal gov. only insures a fraction of the deposits at most banksB) banks keep a fraction of their loans with other banks to maintain the quality of their loan port.C) banks can loan out al but a small fraction of its own money, but must hold all money deposited at the bank on reserve in bank vaults.D) banks can loan out all but a fraction of its own money, but must hold all money deposited at the bank on reserve in bank vaults.
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