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I’m not sure you understand how this works. It’s not a common misconception, it’s literally FRB. The bank might turn around and borrow from the Fed and use the

I’m not sure you understand how this works. It’s not a common misconception, it’s literally FRB. The bank might turn around and borrow from the Fed and use the deposits as reserves, but that has more to do with rates markets and nothing to do with FRB.

nine_zeros 4y ago
This video series might help more: https://www.youtube.com/watch?v=KvpbQlQwl0A https://www.youtube.com/watch?v=KvpbQlQwl0A