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safety-fund system

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Definition of safety-fund system

: a system under which banks are required by law to have or provide a fund (as a common fund provided for by a small tax) as a pledge for the redemption of their circulation

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Learn More About safety-fund system

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“Safety-fund system.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/safety-fund%20system. Accessed 16 Oct. 2021.

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