3 ms·
Do you mean that it's not "a real thing" because some banks are not limited to loans amounts within reserve requirements?
by irln 9y ago
Do you mean that it's not "a real thing" because some banks are not limited to loans amounts within reserve requirements?
- mempko 9y agoBecause the majority of banking systems dont require any reserves. Even in the USA certian household debt like mortgages require reserves while most other debt like commercial does not. And even with mortgages banks have 30 days to come up wuth the reserve. In other words, it doesn't exist as the texbooks describe.