4 ms·
The banker actually creates brand new money to give to whoever is approved for a loan - he/she doesn't use your money for that purpose.
by esja 12y ago
The banker actually creates brand new money to give to whoever is approved for a loan - he/she doesn't use your money for that purpose.
- deleted 12y ago[deleted]
- refurb 12y agoNot sure why you're getting downvoted. A fractional-reserves system does create more money than what is deposited.[1] [1]http://en.wikipedia.org/wiki/Fractional-reserve_banking#Example_of_deposit_multiplication http://en.wikipedia.org/wiki/Fractional-reserve_banking#Exam...