Sentences with phrase «under fractional reserve»

I mean a normal person isn't allowed to lend what he does not owe, but a bank can do that under the fractional reserve rule.

Under fractional reserve banking, commercial banks only hold a limited amount of their total funds in a liquid form at any given time.

Under the fractional reserve banking system, depository institutions lend out most of the deposits they receive from customers.

Under fractional reserve banking, commercial banks only hold a limited amount of their total funds in a liquid form at any given time.

It is true the monetary base spiked during these initial rounds of QE, but the second reason QE didn't lead to hyperinflation is we live under a fractional reserve baking system whereby the money supply is more than just the amount of physical coins, paper money and bank deposits in the system.

Not exact matches

As stated it betrays a lack of understanding how fractional reserve banks (whether under free or central banking) actually work.

Under a system of fractional - reserve banking, interest rates and inflation tend to be inversely correlated.

Yes, transparency is a problem, but that would ALWAYS be true under our current fractional reserve banking system — it's inherently a Ponzi scheme that functions on public gullibility and government edict — banks get to violate private property rights.

Any person who creates or originates United States money by lending against deposits, through so - called fractional reserve banking, or by any other means, after the effective date shall be fined under title 18, United States Code, imprisoned for not more than 5 years, or both.