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In a fractional reserve system, banks are required to hold a percentage (fraction) of their deposits on hand.

Which institutions must follow this policy due to the Federal Reserve Act?

A

Only large commercial banks with deposits over $100 million.

B

Any commercial bank.

C

All commercial banks and savings thrifts doing interstate business.

D

Only banks that do business locally and not across state lines.

E

All commercial banks, thrifts and credit unions doing interstate business.

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