That's true. They would both be really bad for the economy.
Fractional reserve banking is just another form of counterfeiting.
You put $100 in the bank. The bank loans out $90 and keeps a $10 reserve. How is that like counterfeiting?
It is like counterfeiting in that you still believe that your $100 is available to you upon demand, while 90% of it is in someone else's hands and not really available to you at all. Both parties have a claim on that $90 that the bank no longer holds.