The first scenario is the catastrophic one in which the whole banking system based on a fractional reserve collapses.

第一种，整个基于部分准备金的银行系统灾难性的彻底崩溃。

youdao

Because we live under a system of fractional-reserve banking, other consequences quickly ensue.

由于我们身处一个部分准备金银行制度下，间接影响也随即发生了。

youdao

It is because our financial system is based on something called fractional reserve banking.

那是因为，我们的金融系统是建立在某个被称为部分准备金银行制度的基础上。

youdao

What we have--we have a problem that there can be a systemic problem to fractional reserve banking if there is ever a run on the banking system.

我们面临着一个问题,如果出现银行挤兑,部分准备金制度会,导致系统性的问题

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The problem is that in a fractional reserve banking system banks are inherently unstable.

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In a fractional reserve banking system, banks are permitted under law to create deposit money out of thin air.

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Also, the central bank and the (fractional reserve) banking system would face a nearly irresistible temptation to use their ability to create money to hold the deflation at bay as long as possible.

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