Fractional reserve banking: Difference between revisions
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* [[Monetary policy]] | * [[Monetary policy]] | ||
* [[Reserve requirements]] | * [[Reserve requirements]] | ||
* [[100% reserve banking]] |
Revision as of 17:08, 28 March 2016
Banking.
A required minimum ratio of vault cash and balances ('reserves') with the central bank to deposits taken by the bank that the central bank requires commercial banks to hold, where the required ratio is less than 100%.
This is the usual situation.