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fractional reserve banking. In DICTIOUS you will not only get to know all the dictionary meanings for the word
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English
Noun
fractional reserve banking (uncountable)
- (finance, chiefly banking) A widespread banking system in which a bank that accepts deposits from the public puts the majority of those deposits into investments (generating a profit for the bank) as opposed to keeping them all in reserve (i.e., directly on hand); the system assumes that it is unlikely that every customer would need to withdraw their money at the same time (i.e., a bank run).
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