3 ms·
Because they have deposits from 10 other customers from which they where allowed to lend only $9/10. The new dolar they get, allows them to lend the 10th dollar
by pmoleri 4y ago
Because they have deposits from 10 other customers from which they where allowed to lend only $9/10. The new dolar they get, allows them to lend the 10th dollar from each and still comply with the 10% reserve.