Identify the correct statement regarding a fractional reserve banking system.
a. Only a fraction of the banks in the system are allowed to create money
b. Only a fraction of the banks in the system have reserves.
c. The claims outstanding against the bank are only a fraction of the bank's total reserves.
d. Each bank must deposit a fraction of its reserves with the Federal Reserve Bank.
e. Bank reserves represent only a fraction of bank deposits.
e
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