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Fractional reserve is lending out money people give the bank. it's not free money for the bank; the credit is balanced by a debt. You can do the same thing if y
by lonelappde 7y ago
Fractional reserve is lending out money people give the bank. it's not free money for the bank; the credit is balanced by a debt. You can do the same thing if you convince people to leave stuff at your house and then you rent it out.
Heck, every lessee on Airbnb is doing this.
As is everyone who has a mortgage and an investment account.