More on Fractional Reserve Banking

I've been hunting around for more information on this topic. I found this potent article:

The essential part that I'm trying to verify is if the "reserve" is a portion of the total deposits (what we're taught in "It's a Wonderful Life" and what most people believe), or if the "reserve" is the base amount of the deposit and the remainder is conjured out of thin air. Naturally, if the latter is true, then there is a great motivation to keep that under wraps and perpetuate the former idea in the minds of the masses.



blogger templates | Make Money Online