Fractional reserve banking consist or explains on how a bank retains reserves (money) in order to equal the portion of deposits to satisfy the demand. These reserves are held in the bank as deposits and it is reflected in the bank account. The fractional reserve banking permits the money supply to grow in a a certain way which is denominated as money multiplier from the money originally created. When the funds is in the bank they are no longer belong to the customer but instead they become the bank's property.
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