Is a bank required to have adequate cash (FRN) on hand to cash out a large check?

[David Merrill]

In many ways this is already fractional and reserve banking.

By endorsement you insure that the bills in your wallet will remain without claim to lawful money. You will pass these insurance policies on unclaimed.

[shikamaru]

In many ways this is already fractional and reserve banking.

By endorsement you insure that the bills in your wallet will remain without claim to lawful money. You will pass these insurance policies on unclaimed.

Bills are notices of debt.

Fractional banking is one thing. Reserve banking is something different.

Fractional banking leads to boom and bust cycles of the money supply (and economy).

Reserve banking is 1-to-1. A dollar doesn't go out that isn't linked to some security. Obviously reserve banking is more secure and stable than fractional reserve banking. I'm glad you mentioned reserve banking, thank-you. Reserve banking is soon to go into personal practice ....

Insurance is about risk or rather the transfer and spreading of risk from an individual to a pool of insureds.

[David Merrill]

Bills are notices of debt.

Fractional banking is one thing. Reserve banking is something different.

Fractional banking leads to boom and bust cycles of the money supply (and economy).

Reserve banking is 1-to-1. A dollar doesn't go out that isn't linked to some security. Obviously reserve banking is more secure and stable than fractional reserve banking. I'm glad you mentioned reserve banking, thank-you. Reserve banking is soon to go into personal practice ....

Insurance is about risk or rather the transfer and spreading of risk from an individual to a pool of insureds.

You have me thinking...

Thanks!

Fractional and Reserve banking are different? I would like you to use this comic book by the Fed if it is adequate in detail. I have equated them in my mind and would like to get correct definitions.