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ryathal , 10 months ago Fractional reserve banking literally creates money. If you have the only $100 in existence and put it in a bank, they can then lend $100 to someone else, now $200 exists. You still have that $100, and so does the person that got the loan.
Fractional reserve banking literally creates money. If you have the only $100 in existence and put it in a bank, they can then lend $100 to someone else, now $200 exists. You still have that $100, and so does the person that got the loan.