fractional reserve banking
Word Rarity
Rare
Frequency: Zipf frequency 3.02 in modern English
39
Scrabble Score
24
Letters
5
Syllables
15
Unique Chars
Meaning
noun
A widespread banking system in which a bank that accepts deposits from the public puts the majority of those deposits into investments (generating a profit for the bank) as opposed to keeping them all in reserve (i.e., directly on hand); the system assumes that it is unlikely that every customer would need to withdraw their money at the same time (i.e., a bank run).
Uncountable