How Fractional Reserve Banking Operates

*update – this chart is technically backwards.  The way it is depicted, from $1,000.00, $900.00 is used for lending with the remaining 10% ($100.00) as reserves.  What is allowed (and I speculate what usually happens,) when $1000.00 is deposited, it is used as 100% of the reserves for $10,000 in new credit.



About Brian in Chicago

Chronicler, crypto evangelist, urban agriculturalist and enjoyer of soccer. It's time for humanity to mature to its adulthood. I share things I enjoy and that I feel are worth knowing. Follow along at, & Be well, everyone.
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