Explain Fractional Reserve Banking. Please illustrate with an example.

Fractional Reserve banking is where bank deposits are backed by actual cash on hand and available for withdrawal. Example - if a bank has $500 million in assets, it must hold $50 million, or 10%, in reserve

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a phrase from a poem by ralph waldo emerson about the battle of lexington and concord. emerson's words read, “here once the embattled farmers stood / and fired the shot heard round the world.”

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