Welcome back to the Crux of Investing & Finance! This week's lecture covers fractional reserve banking. It has been the default method for developed countries for central banking for over 300 years and there is a reason for this. The ability to have reserves put aside in order to mitigate the risk of bankruptcy of commercial banks or a liquidity squeeze when a bank run occurs is a major upside of this style of central banking. Listen now to learn all about it, until Tuesday...Jay
