Question: Given below is an excerpt from a conversation. Comment critically on it. Moderator: Fine, but as long as you have fractional reserve banking, youre never

Given below is an excerpt from a conversation. Comment critically on it.

Moderator: Fine, but as long as you have fractional reserve banking, you’re never going to eliminate the possibility of withdrawal risk altogether.

Appleton: That’s why you have a lender of last resort, Mike.

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