/biz/ - Business & Finance

>>54416483

I'd hold onto the cash and use it on a stock fund personally.

>>54334766

Banks don't make loans with your deposits OP. When a bank makes a loan, they create new bank deposits. We have a 0% reserve system, not a fractional reserve system.

When you deposit cash it the bank, the bank matches that with bank reserves, they can then use those bank reserves to buy Agency MBS and Treasuries. Regular people don't have access to bank reserve. Only banks, the US Treasury and the Federal Reserve have access to bank reserve.