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The bank only has 100k though. They can’t loan out 1m because they don’t have 1m to give out.
by colinmhayes 4y ago
The bank only has 100k though. They can’t loan out 1m because they don’t have 1m to give out.
- drexlspivey 4y agoThat's the whole point, they just create $1m and give it out
- colinmhayes 4y agoWhat happens when the person withdraws the million dollars? The bank only has 100k.
- drexlspivey 4y agoAre you talking about physical paper currency? That’s totally a different issue. What happens if the original depositor deposited via a bank wire and you want to loan out $100 dollars in paper money? You just get some paper money from the FED. Same thing here.