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Fractional reserve banking doesn't actually model how banks work in the modern economy though - they don't lend out deposits, they just add a figure to the cust
by spiralx 6y ago
Fractional reserve banking doesn't actually model how banks work in the modern economy though - they don't lend out deposits, they just add a figure to the customer's account and add a matching loan to their assets, literally creating money. They could do this without any deposits at all.