The one major problem with fractional reserve system occurs whena. Borrowers are unable to pat back causing domino effect of bank failuresb. The stock market drops in value rapidly(‘crashes’)...

The one major problem with fractional reserve system occurs when a. Borrowers are unable to pat back causing domino effect of bank failures b. The stock market drops in value rapidly(‘crashes’) leaving banks without any cash c. Too much money is created through the money multiplier effect which decreases the value of money