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Then where is the bank supposed to keep their money? In another commercial bank? In cash? This creates an infinite regression problem... They could keep it in
by umanwizard 9y ago
Then where is the bank supposed to keep their money? In another commercial bank? In cash? This creates an infinite regression problem...
They could keep it in the Fed, but the Fed charges money for the privilege (and I assume so does the ECB and other equivalents)
- SilasX 9y agoBanks hold unloaned reserves already.
- umanwizard 9y agoHold them where? In cash?
- KekDemaga 9y agoI imagine I could hold cash safely for a fee less than 0.75%