According to Smith, all monetary systems, including money markets, should function within fractional-reserve banking.

This practice sets a limit on the fraction in fractional-reserve banking.

Fractional-reserve banking allows the money supply to expand or contract.

For example population growth in virgin territory, or fractional-reserve banking creating inflation.

In modern economies with fractional-reserve banking, money creation follows a two stage process.

Due to leverage function of fractional-reserve banking, it may greatly impact the financial industry.

Additionally, banks shall no longer be allowed to create money, putting an end to fractional-reserve banking.

Whenever a bank gives out a loan in a fractional-reserve banking system, a new sum of money is created.

North argues for the abolition of the fractional-reserve banking system and a return to the gold standard.

Fractional-reserve banking is the current form of banking in all countries worldwide.

Despite calls for reform, the nearly universal practice of fractional-reserve banking has remained in the United States.

There are two types of money in a fractional-reserve banking system operating with a central bank:

A significant number of gold-standard advocates also call for a mandated end to fractional-reserve banking.

Fractional-reserve banking is disallowed as a form of breach of trust.

Fractional-reserve banking permits a bank to make loans against the reserves it takes in as demand deposits.

Much of the film presents the filmmaker's understanding of modern money creation in a fractional-reserve banking system.

He is an opponent of fractional-reserve banking.

Because the nature of fractional-reserve banking involves the possibility of bank runs, central banks have been created throughout the world to address these problems.

Thus fractional-reserve banking was born.

The emergence of central banks reduced the risk of bank runs inherent in fractional-reserve banking and allowed the practice to continue as it does today.

The different forms of money in government money supply statistics arise from the practice of fractional-reserve banking.

Through fractional-reserve banking, the modern banking system expands the money supply of a country beyond the amount initially created by the central bank.

That's O.K.: it's an inevitable part of a fractional-reserve banking system with federal-deposit insurance.

However, there are various heterodox theories concerning the mechanism of money creation in a fractional-reserve banking system, and the implication for monetary policy.

Like all modern monetary systems, the monetary system in New Zealand is based on fiat and fractional-reserve banking.