If you give someone money to lend out that is a contract. But if somebody lends out your money more than once that is fraud.
Because now there are multiple claims to the same property.
Discussion
lol nice strawman. Lending out money more than once is not a requirement of fractional reserve
Actually it is. There are two ways to fractional reserve:
1.) Lend out more money than you have.
2.) Give out certificates for more assets than you own.
Wouldn’t lending 10% of everyone’s deposits be fractional reserve?
No. That’s more than full reserve. Fractional reserve means that you have only a fraction of the assets that you owe.
Fractional reserve is when a bank has $100 deposits and uses this to back a $1000 credit.
Or when a central bank gives out 100 ounces worth of gold notes and only has 1 ounce in the vault.
