Meaning of fractional reserve banking in English the practice in which banks keep only a small amount of their customers' money and lend the rest to other. It is the fractional reserve system that is unnatural. With fractional reserves, Henry can still spend his $ (using cheques) despite the fact that the. Investopedia defines fractional banking as “a banking system in which only a fraction of bank deposits are backed by actual cash-on-hand and.
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Fractional Reserve Banking (The Banking System Explained)
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