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"Fractional-reserve banking is the system of banking operating in almost all countries worldwide,[1][2] under which banks that take deposits from the public are
by lupire 4y ago
"Fractional-reserve banking is the system of banking operating in almost all countries worldwide,[1][2] under which banks that take deposits from the public are required to hold a proportion of their deposit liabilities in liquid assets as a reserve, and are at liberty to lend the remainder to borrowers"
- dools 4y agoYes now it says: “to lend the remainder to borrowers” Can you describe how money that a bank has in deposits is lent out to borrowers?