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I think one of us is confused. Your link says they can loan out money that people have on deposit even though they technically owe it to depositors. They only n
by eli 9y ago
I think one of us is confused. Your link says they can loan out money that people have on deposit even though they technically owe it to depositors. They only need to reserve a fraction of what people have deposited (so better hope they don't all withdraw at once). It doesn't say they can loan out MORE than had been deposited.