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fractional reserve banking (G2)<br />A banking system using HIGH-POWERED MONEY as only a fraction of its total assets rather than ONE HUNDRED PER CENT RESERVE BANKING. According to the country and phase of banking evolution, cash, and assets which can be quickly converted into cash without capital loss, can be as little as a third or a quarter of the total volume of commercial banks' deposits. This system has made possible a major increase in credit in many countries in the past hundred years.
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<strong>SSA</strong> – Social Security Administration.
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