Introduction to Fractional Reserve Banking
This online course breaks down the differences between fractional reserve and full reserve banking systems and how they can impact the economy.
This free online course discusses how fractional banking allows banks to free up large supplies of capital that can be lent to businesses. Fractional reserve banking is a key concept in banking and helps to expand the economy. In this system, banks maintain only a fraction of the total amount of money in all their customers’ deposit accounts as cash available for withdrawal. Take this course today to learn why this is so.
What You Will Learn In This Free Course
Understanding Fractional-Reserve Banking
In this module, you will be introduced to Fractional-Reserve Banking, You will learn about what Fractional-Reserve Banking is and you’ll see what the weaknesses of Fractional-Reserve Banking are. You will then discuss Full-Reserve Banking before you gain a better understanding of Money Supply. Finally, you will take a look at some simple Fractional-Reserve accounting.
Course assessment
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