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Most economiesdeveloped and developingfeature a fractional banking system, that is, a certain portion of deposits must be held in reserve (cannot be lent out), but

Most economiesdeveloped and developingfeature a fractional banking system, that is, a certain portion of deposits must be held in reserve (cannot be lent out), but the rest of the deposits can be lent at a higher interest rate than is paid on the original deposit. Has fractional banking helped economies grow and prosper, or is it a "scheme" that allows banks (and bankers) to profit off the labors of others?

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