Fractional Reserve Banking Explained - Fraud Becomes Legal

Fractional Reserve Banking Explained: Fraud Becomes Legal The gap between the very rich and the rest of us is getting bigger. Is the ’trickle-down’ theory correct? Fractional-reserve banking is the practice whereby a bank accepts deposits, makes loans or investments, and holds reserves that are a fraction of its deposit liabilities. Reserves are held at the bank as currency, or as deposits in the bank’s accounts at the central bank. Fractional-reserve banking is the current form of banking practiced in m