Sentences with phrase «fractional reserve requirements»

For example, fractional reserve requirements are 10 % against checking accounts, but 0 % against savings accounts.

Similarly, in a fractional reserve requirement environment, when the depository institution system adds loans and securities to its assets, it «pays» for these asset acquisitions with funds created figuratively out of thin air.

9 % may not seem like a large percentage, but keep in mind that the fractional reserve requirement is 10 %.

Not exact matches

This is in sharp contrast to the fractional reserve banking system that is pervasive in the world and typically has a 10 % reserve requirement, and therefore creates excess credit and consequently the boom and bust cycles.