Full reserve banking requires that all demand deposits be fully backed by liquid reserves and that loans be funded by time deposits of equal or longer duration, matching deposit duration to loan duration to maintain stability.
definitionpending
Speaker
Len AldenEvidence Quote
“all demand deposits which can be Redeemed by depositors at any time must be fully backed by liquid reserves and any loans that a bank makes must instead be funded by time deposits with an equal or longer duration”
Created: 8/12/2026, 2:29:46 AM
My Notes
Loading notes...