3 ms·
The money in your bank account is an IOU. It doesn't represent physical money at all.
by rhino369 11y ago
The money in your bank account is an IOU. It doesn't represent physical money at all.
- msandford 11y agoTechnically you're right of course. But functionally there's no difference. I go to the bank and ask for $1000 and they give me the cash and deduct the balance from my account. What their reserve ratio is immaterial most of the time. Except during crises and bank runs.