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Fractional Reserve Banking

The Encyclopedia of Hidden History :: Subjects :: 04. ECONOMICS

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Fractional Reserve Banking Empty Fractional Reserve Banking

Post  TheArchivist Fri Apr 08, 2016 6:03 pm

Fractional-reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, and holds reserves that are a fraction of its deposit liabilities.[1] Reserves are held at the bank as currency, or as deposits in the bank's accounts at the central bank. Fractional-reserve banking is the current form of banking practiced in most countries worldwide.
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