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Chapter 3
Economics
What is the meaning of fractional reserve system in que. 10
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The fractional reserve system is a banking practice where only a fraction of a bank's total deposits is held in reserve, while the rest is used to lend to borrowers or invest. This system allows banks to create money through loans and credit, contributing to the overall money supply in the economy.
Thread Starter
Rifhat KhanA part of CRR can also be used??
CRR is a reserve. Its purpose is not to give out as loan
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