Technically 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 balanc

Technically 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.