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by EliRivers
4683 days ago
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You're right in the first step; we can only end up with the 30000 dollars if the money is deposited and relent several times ( http://en.wikipedia.org/wiki/Fractional_reserve_banking#Exam... ). The example uses a single bank, but given that all the money goes through various banks as people borrow it and put it somewhere, I could still expect my 1000 dollar deposit to end up in aggregate as a 30000 dollar loan. |
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