Sentences with phrase «holding fractional reserves»

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.

Not exact matches

(As an aside, equilibrium means «no tendency to change,» fiat means deriving its value from law rather than some underlying commodity backing, and fractional reserve means that banks hold only a fraction of deposits on reserve, loaning the rest out.).

Here is a post from Libertarian News that begins, «I recently got into an argument over on the Reddit Bitcoin boards where I held the position that fractional reserve banking with Bitcoins was not possible,» which sounds fun; he recants that view but does make what I think is a very valid point:

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

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

We live in a fractional reserve world, which means if mass hysteria takes hold and everyone tries to redeem their investments simultaneously, the cash runs out pretty quickly.

Following accusations that China's top exchanges were fractional - reserve businesses, OKCoin's audit shows it holds 104.86 % of customer bitcoins.