Why #fullReserveBanking is better than #fractionalReserveBanking?

Full reserve banking offers a straightforward approach where banks keep all deposits in reserve, ensuring they can cover every dollar deposited. This eliminates the risk of bank runs and protects depositors' funds.

In contrast, fractional reserve banking allows banks to lend out a portion of deposits, creating money through loans but also increasing the risk of insolvency.

With full reserve banking, financial stability reigns supreme, as every dollar is backed by actual reserves, providing a safer and more reliable banking system for everyone involved.

#brokenMoney