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Fractional reserve banking is exactly how this works, albeit banks do not "invest" the customers' money, instead they lend it.
by 5ersi 3y ago
Fractional reserve banking is exactly how this works, albeit banks do not "invest" the customers' money, instead they lend it.
- legutierr 3y agoWhat is a loan but an investment? What is government debt? What are mortgage backed securities? The investments that banks can make are restricted, but it is not inaccurate to call them investments.