Fractional reserve banking (FRB) is a regulatory system in which banks hold at least a specific fraction of their customers’ deposits in reserve and lend out the rest. When a bank accepts customer deposits, it must keep a certain percentage of those deposits in reserve, typically held at that country’s central bank.
An Exchange-Traded Fund (ETF) is an investment security that combines the features of both mutual funds and stocks. Like mutual funds, ETFs pool money from a group of investors to buy a basket of assets or securities, such as stocks, bonds, or commodities. However, unlike mutual funds, ETFs trade on an exchange, similar to individual stocks.
Some financial advisers offer discretionary investment management as part of their service, while others do not.