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What does a fractional reserve banking system mean?

What does a fractional reserve banking system mean?
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What does a fractional reserve banking system mean?

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User Thotheolh
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Fractional reserve banking is the practice where a bank accepts deposits, makes loans or investments, but is required to hold reserves equal to only a fraction of its deposit liabilities.
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User ApTNow
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One that keeps only a small part of customers' deposits on hand

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User Ben Aubin
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