Asked by
Filip Sundqvist
on Dec 17, 2024
Verified
Fractional reserve banking is a system where banks must hold an amount of cash based on a percentage of its loans.
Fractional Reserve Banking
A banking system where banks hold only a fraction of the deposits as reserves, using the remainder for loans and advances.
- Familiarize with the foundational aspects of fractional-reserve banking and its implications for the distribution of money.
Verified Answer
VM
Learning Objectives
- Familiarize with the foundational aspects of fractional-reserve banking and its implications for the distribution of money.