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Also known as fractional reserve banking (the money can make loan more money than it has in its reserve). If someone tries to do a bank run the fed will supply
by 29athrowaway 6y ago
Also known as fractional reserve banking (the money can make loan more money than it has in its reserve).
If someone tries to do a bank run the fed will supply the bank with missing money, in part, because the fed was created by private banks to counter bank runs.