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In this alternative to the melting pot, cultural groups exist not only side by side but equally. This is rare, as one language, religion, or culture will usually dominate.
Interest Rate
Interest rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
Fractional-reserve Banking
A banking system where banks hold only a fraction of their deposits in reserve, lending the rest to generate profits.
Money Supply
The collective volume of monetary assets within an economy at a certain point, including cash, coins, and balances in checking and savings accounts.
Fractional-reserve Banking
A banking system where banks hold only a fraction of deposits as reserves and lend out the remainder, thereby creating additional money supply.
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