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Banking and Money (Khan Academy)

Borrow Short, Lend Long, Send the Bill to Taxpayers

The strongest form of Sal’s criticism: the system is not a fraud, but its profit is paid for by the public.

20 min190 XP available6 challenges

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Fractional reserve banking means banks keep only part of their deposits as cash. According to the video, what does this, together with deposit insurance, really let banks do?

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