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Under which of the following circumstances would a fractional reserve system fail? As long as the holders of paper currency demand more gold than what

Under which of the following circumstances would a fractional reserve system fail?

  • As long as the holders of paper currency demand more gold than what banks are holding as reserves
  • As long as there is more gold than paper money
  • As long as banks are able to earn money on interest
  • As long as banks are able to make loans

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