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 trickledown theory correct Fractionalreserve 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. Fractionalreserve banking is the current form of banking practiced in m