Study: The majority of Americans don't understand how fractional banking works

Indicate that a significant number of Americans are not aware of how fractional reserve banking works.

You may at least want to have a general idea of where your money is going thanks to fractional reserve banking.

Traces the roots of fractional reserve banking back to an unnamed goldsmith in ancient times.

Here you have a simple explanation of how fractional reserve banking works.

Why Fractional Reserve Banking ExistsThere are several reasons given for fractional reserve banking to exist.

Fractional reserve banking is one of several tools that the Federal Reserve uses to manipulate the supply of money, and thus the relative value of the American dollar.

Critiques of Fractional Reserve BankingOn a simple level, fractional reserve banking exposes customers to risk that they would likely prefer not to face.

These risks are, in a nutshell, those presented by the fractional reserve banking system.

ConclusionThe history of fractional reserve banking is one of extreme booms and busts.

The extreme tides of the American fractional reserve banking system is enough to sew the seeds of mistrust, and those seeds may be the impetus for once-burned victims of the fractional reserve system to turn to new means of asset protection such as cryptocurrency.