Re:Calling All Hackers: How money works (2024)
by yfontana on Wednesday January 07, 2026 @04:20AM
(#46524272)
Reserves matter even if reserve ratios are zero. If Bank A lends too much money, then when its customers spend that money, a lot of it will end up deposited at other banks. These banks will then ask Bank A for reserves (as in, central bank money) to clear the inter-bank transfers, which Bank A will need to borrow from the central bank, at a cost.
[ Parent
| on HN ]
There are no comments on this comment yet.