12. Under fractional reserve banking, when a bank lends to a customer, a. bank credit decreases. b....
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12. Under fractional reserve banking, when a bank lends to a customer,
a. bank credit decreases.
b. reserves drain away from the system.
c. the bank is protected from a run.
d. borrowers receive a newly created demand deposit; that is, money is created.
e. bank profitability is decreased.
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