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Posts tagged as “Stock Market Crash”

Bank Runs Are Contagious

This creates a problem because banks operate on a fractional reserve system, meaning they don't keep all of their deposits in cash on hand. Instead, they lend out a majority of that money to borrowers or invest it in other assets.

Deflation

Deflation is the trend of decreasing prices of the products in the economy. Deflation changes the value of money – it increases it.