Re:Ask HN: Teach me something new
by mmcconnell1618 on Saturday April 30, 2022 @08:31AM
(#31215543)
Doesn't the US have a fractional reserve banking system? For every $1 in bank reserves, the bank can loan out $9. So even if the special money of the Fed can't be used directly, it has the effect of allowing banks to have a larger base of reserves which means the banks can create money by loaning it out to others.
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