2 ms·

The Fed is not the only bank who can loan funds at a fractional reserve. You might want to read a bit more about how banking works.

• qaq 7y ago
  Fractional reserve does not create money it just specifies what % of money a bank can loan out.
  • gridlockd 7y ago
    https://en.wikipedia.org/wiki/Money_supply https://en.wikipedia.org/wiki/Money_supply