What is the reserve ratio for banks with deposits over $71 million?
Fractional Reserve Banking
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Science, Business
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6th - 12th Grade
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Hard
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The video explains how banks traditionally used gold reserves but now rely on fractional reserve banking, where they lend out more money than they hold. This system allows economic growth but poses risks during crises, as seen with Northern Rock in 2007. Some people prefer gold for its stable value.
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Why do some people prefer to trust gold over banks?
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