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Fractional reserve banking is basically giving banks the authority to create money on behalf of the government. They didn't create any extra money to cover thi
by jedberg 4y ago
Fractional reserve banking is basically giving banks the authority to create money on behalf of the government. They didn't create any extra money to cover this.
- senectus1 4y agothis is also a good point. Fractional should only be allowed if fully insured. which would make it cost inefficient, so they wouldn't do it. and that should tell you something about fractional reserves...