Fractional reserve banking is a banking system in which banks only hold a fraction of the money their customers' deposit as reserves. This allows them to use the rest of it to make loans and thereby essentially create new money. This gives commercial banks the power to directly affect the money supply.
PTELook at the text below. In 35 seconds, you must read this text aloud as naturally and clearly as possible. You have 35 seconds to read aloud.
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Beginning in 35 seconds.