Sentences with phrase «called fractional reserve»

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.

Not exact matches

With banks holding fractional reserves of Federal Reserve dollars (notes and deposit claims on the books of the Fed, whose sum is called «the monetary base»), when the Fed increases the quantity of Federal Reserve dollars by $ 1 billion, the banking system ordinarily creates a multiple amount of deposit dollars.

That is why it is called «fractional reserve lending» — they keep a fraction as a reserve.

The name «religion» should be reserved for the fully organized system of feeling, thought, and institution, for the Church, in short, of which this personal religion, so called, is but a fractional element.»

The early termination was due to slow enrollment, thought to be a consequence of the rapid spread and increased appeal of a new angioplasty technique called fractional flow reserve during the later part of the study enrollment period.

Just like you said for Ponzi schemes «the only source of the so - called interest on the money was the contributions of future investors», for fractional - reserve banking the source of interest is the future profit made by lending the investor's money - to the investors themselves!

Finally, following Hoppe, who demonstrated in Democracy: The God That Failed (Transaction Books, 2002) that private property (i.e., individual ownership and rule) and democracy (i.e., collective ownership and majority rule) are incompatible, it outlines the invidious moral and ethical consequences (which it calls the «monetary roots of democratic pathologies») of fractional reserve and central banking.