Search for a term:

fractional reserve banking


Definition
A banking system in which only a fraction of the total deposits managed by a bank must be kept in reserve. The amount of the deposits equals the amount of the reserves times the deposit multiplier. In the U.S., this system is maintained by the Federal Reserve Board.

Related Personal Finance Articles

Loading...

fractional reserve banking in the news

Loading...

fractional reserve banking is ...

... part of the Banking and Economy subjects.

Search volume for fractional reserve banking

Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z