>They still have to borrow the money from the central bank. Fractional reserves mean that the credited account's bank must deposit a portion of the money bank at central bank.
Absolutely false. For starters, in many jurisdictions including the US, the reserve fraction is now 0% and has been for quite some time.
Absolutely false. For starters, in many jurisdictions including the US, the reserve fraction is now 0% and has been for quite some time.
https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m...
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