4 ms·
They still have reserve requirements, meaning the total money they can lend out isn't infinite and therefore the money they lent to me they might wish to have b
by sokoloff 3y ago
They still have reserve requirements, meaning the total money they can lend out isn't infinite and therefore the money they lent to me they might wish to have back and lend it out to someone else at the higher rate.
- AnthonyMouse 3y ago> They still have reserve requirements Do they? https://www.federalreserve.gov/monetarypolicy/reservereq.htm https://www.federalreserve.gov/monetarypolicy/reservereq.htm > meaning the total money they can lend out isn't infinite and therefore the money they lent to me they might wish to have back and lend it out to someone else at the higher rate. That's assuming they have someone else to lend it out to who is not only equally creditworthy, but equally creditworthy at the higher interest rate and therefore payment amount.