Full reserve banking is better than fractional reserve banking, as the latter allows banks to create money out of thin air by lending more than their reserves. In contrast, full-reserve banking requires that banks hold 100% of the funds deposited in them and not using those deposits for any risky activities such as speculative investments or loans which reduces financial risks like bank runs and reinforces soundness within the economy.

https://youtu.be/jk_HWmmwiAs?si=opmad8RO221pEuqg

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