What is the “Fractional Reserve System?” Basically, it means that banks have the power to loan out money at TEN TIMES the quantity that they’re holding in their vaults. That’s right, they are making a profit by lending out YOUR money. And in exchange, they only give you a small interest rate of about 1%. This means that the money you save is worth less over time since it does not keep up with inflation! Knowing this, it becomes obvious that saving money in the bank isn’t in your best interest. B