Fractional reserves mean that banks maintain less than 100 percent of customer deposits in liquid assets,or reserves.

Name: Fractional reserves mean that banks maintain less than 100 percent of customer deposits in liquid assets,or reserves.
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Fractional reserves is a banking system in which banks hold only a fraction of their customers' deposits as reserves, while lending out the rest of the money. This means that banks do not maintain 100% reserves but only a fraction of it.

Fractional Reserves Mean That Banks Maintain Less Than 100 Percent