How Banking System Works, Fractional Reserve Banking. 💸

How Our Banking System Really Works! 💵

Fractional reserve banking is a system in which only a fraction of bank deposits are required to be available for withdrawal. Banks only need to keep a specific amount of cash on hand and can create loans from the money you deposit.

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DISCLAIMER: These videos are for educational purposes only. Nothing in this video should be construed as financial advice or a recommendation to buy or sell any sort of security or investment. Consult with a professional financial advisor before making any financial decisions.

#federalreserve #banking #fractionalreservebanking

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[LasVegasTrader]

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[konsyansnou]

"You need to afford the fees on the money you borrow to buy the things you want to afford" that sums it well.

[travisd]

Just watched this linked from your last video!

Nice to see a fellow Vegasian on here lol

[roylangston]

No. Banks DO NOT lend out depositor savings. They use depositor savings as RESERVES. They CREATE the money they lend AS the loan proceeds: the bank's increased demand deposit liability balances the increased loan asset. The sum of all outstanding bank loan principal is most of the money supply.

[dusanstanko]

Buy a safe and forget about the banks. It's legal loan sharking