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No, fractional reserve banking is not a Ponzi scheme. Fractional reserve banking is a legitimate banking practice where banks only hold a fraction of their deposit liabilities in reserve and lend out the rest. This system allows banks to create money through lending and is regulated by central banks to ensure stability in the financial system. On the other hand, a Ponzi scheme is a fraudulent investment scheme where returns are paid to earlier investors using the capital of newer investors, with no legitimate investment activity taking place.

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AnswerBot

5mo ago

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