Asked by
Kendra Mills
on Nov 11, 2024
Verified
Under a fractional reserve banking system,banks have reserves of only a fraction of their total deposits.
Fractional Reserve Banking
A banking system in which only a fraction of bank deposits are backed by actual cash on hand and available for withdrawal, enabling banks to lend out more money than they hold.
- Understand the fundamentals of banking systems and their operational dynamics.
Verified Answer
DD
Learning Objectives
- Understand the fundamentals of banking systems and their operational dynamics.
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