Fractional-reserve banking (部分准备金银行制度)

Fractional-reserve banking (部分准备金银行制度 bùfèn zhǔnbèi jīn yínháng zhìdù) refers to a system in which banks lends out money while keeping a small portion of customer deposits on hand for withdrawal requests. Also see: 100-percent-reserve banking.

  • 部分 (bùfèn) refers to element or component.
  • 准备 (zhǔnbèi) here refers to store for future use.
  • (jīn) as in cash (现金 xiànjīn) or gold (黄金 huángjīn).
  • 银行 (yínháng) as in conmmercial bank (商业银行 shāngyè yínháng).
  • 制度 (zhìdù) refers to a system.

Fractional-reserve banking (部分准备金银行制度 bùfèn zhǔnbèi jīn yínháng zhìdù) word examples:

  1. Reserve (准备 zhǔnbèi or 储备 chǔbèi) as in Federal Reserve Bank (美国联邦储备银行 měiguó liánbāng chǔbèi yínháng).
  2. Banking (银行 yínháng) as in banking system (银行系统 yínháng xìtǒng).
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