Fractional Reserve Banking

Fractional Reserve Banking

Assessment

Interactive Video

Science, Business

6th - 12th Grade

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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1 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

What new insight or understanding did you gain from this video?

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