A fractional banking system is fundamentally prone to the (speculative, liquidity, bailout, or monopoly) problem because it creates more receipts for deposits than there are in reserves in the system. In a fractional banking system, a banking panic will likely:
A) lead to an increase in the currency/ deposit ratio
B) be impossible because the system is fundamentally sound.
C) Cause people to deposit more into their accounts to help save the bank.
D) Increase consumer confidence