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. I like sharing. I chronicle in the areas of cryptos, urban agriculture (aheh- gardening,) and esoterics & deeper truths. Follow along at these blogs:, & Rule #1 - Take ownership of your world. If you see something that needs fixing, take action. Even if you're not going to be the one to fix it, contribute something towards it. Rule # 2 - Don't be a dick. Be well, everyone.
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