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Fractional reserve refers to liquid cash, vs stuff the banks lend back out, but that doesn't mean bank balance sheets don't have to balance out in terms of asse
by majormajor 5y ago
Fractional reserve refers to liquid cash, vs stuff the banks lend back out, but that doesn't mean bank balance sheets don't have to balance out in terms of assets and liabilities.
You can't just declare yourself a bank and turn a million dollars into ten million dollars, say.