UNDERSTANDING THE FRACTIONAL RESERVE BANKING SYSTEM
Keywords:
fractional reserve banking, reserves, money creation, central bank, financial stability, economic growth.Abstract
The Fractional Reserve Banking System is a foundational element of modern finance that is pivotal in money creation, economic growth, and financial stability. This article provides a concise overview of the fractional reserve banking system, outlining its history, key principles, and positive and negative aspects for the financial industry and the economy.
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