Banks - Reserves ratio to how much they can Lend ?

Mar 08, 2006 0 Replies

Reading one of those sites about the root of all evil - money



anyway , something about Banks can lend a multiple of their reserves



e.g. reserves 10 can lend out 100 but of course they dont actually have the 90 so its all a con



anyone up on this sort of thing to expand further ?



thanks


Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required