Full Reserve Banking

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Revision as of 17:24, 26 December 2015 by Flix (talk | contribs) (frb)
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A Full Reserve Banking or 100% reserve banking system is one in which banks must hold reserves for 100% of on-demand liabilities. This means that should on-demand creditors all simultaneously ask for repayment, the bank will be able to honor all its obligations. This contrasts with a system of Fractional Reserve Banking.

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