3 ms·
Interestingly, that's how the monetary system flows. I give you 1'000, you keep giving it to other people, eventually back to me. if no reserve limit [1] is pla
by nevi-me 6y ago
Interestingly, that's how the monetary system flows. I give you 1'000, you keep giving it to other people, eventually back to me. if no reserve limit [1] is placed, we could end up with millions from that 1'000.
[1] https://www.economicshelp.org/blog/67/money/money-multiplier-and-reserve-ratio-in-us/ https://www.economicshelp.org/blog/67/money/money-multiplier...