While it is true that the fractional reserve system allows banks to lend out more money than they actually have in reserves, banks are required by regulatory bodies to maintain a minimum level of reserves.
Read More
A blog by Razvan Chiorean
Dive into the world of DeepTech, where quantum, AI, and blockchain technology, fuel exponential growth. Join us in compounding knowledge and drive cutting-edge breakthroughs.
While it is true that the fractional reserve system allows banks to lend out more money than they actually have in reserves, banks are required by regulatory bodies to maintain a minimum level of reserves.
Read More