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Money is fungible. Functionally, the result is the same. A bank cannot lend out more than the amount of assets (deposits) that it has on the books.
by missedthecue 4y ago
Money is fungible. Functionally, the result is the same. A bank cannot lend out more than the amount of assets (deposits) that it has on the books.
- psychphysic 4y agoThat's categorically untrue. But understanding why would require reading the article I linked earlier.