3 ms·
Because the majority of banking systems dont require any reserves. Even in the USA certian household debt like mortgages require reserves while most other debt
by mempko 9y ago
Because 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.