In the united states, the fractional reserve policy that governs commercial banking is controlled by the ______________.

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04-05-2017
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In the united states, the fractional reserve policy that governs commercial banking is controlled by the ______________.

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andriansp andriansp · Answer 1 · 2017-05-14T11:56:13+02:00

andriansp andriansp

14-05-2017

In the united states, the fractional reserve policy that governs commercial banking is controlled by the Federal Reserve. Fractional reserve is a part of customer deposit that cannot be channeled as a loan for a debtor.
This policy made to maintain commercial bank's liquidity. Thus, it will not collapse when a customer withdraw some amount from the deposit

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