Word Pronunciation & Dictionary

fractional reserve banking

Word Rarity Rare

Frequency: Zipf frequency 3.02 in modern English

Syllables
frac-tion-al re-serve bank-ing
IPA
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

Usage

Questions

What does fractional reserve banking mean?
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).

How to pronounce fractional reserve banking

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