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Replying to Avatar IntuitiveGuy☯️

When you deposit money in your Bank they can lend them to someone else, up even to 90% making profit from it.

The person that borrowed money now has money in his bank account, and imagine is a different bank, 90% of those money can be lend to someone else.. and so on.

Banks have obligation to maintain just a fraction of the money you put in your bank account. It's a huge rabbit hole when you understand there's no money in First place, it's all debt.

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Cykros 11mo ago

Reserve requirements in the US have been zero for awhile now. But yes,they used to need cash.

They do at least have asset requirements still. Just not cash anymore.

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Satosha 11mo ago

Plus they need to maintain a reserve at Fed ..

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