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/biz/ - Business & Finance

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>> No.15514401 [View]
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15514401

If you give a bank 100 deposits of 1000 dollars, you got a 100,000 dollars.
Most people think that the bank invests 90,000 and keeps 10,000 on deposit.
What actually happens is the bank holds onto 100,000 and issues 1,000,000 dollars worth of loans.

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