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snekplex 🐍 on Instagram: "Fractional reserve banking is a system where banks only keep a fraction of customer deposits on hand, and can lend out or invest the rest. This allows banks to create money in the economy, expanding it by freeing up capital for lending - Reserve Requirements | Banks must keep a percentage of deposits in reserve, ranging from 0–10%. For example, if a bank has a 10% reserve requirement, it can lend out 90% of deposits - Lending | Banks use deposited money to make loans,
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