Question though james (npub1cj9…0efa) !
How exactly does it work?
1) $100 dollars deposited at institution A, A keeps $10 (with a 10% reserve ratio), and lends out $90, the $90 gets deposited at B, who keeps $9 and lends out $81, and so on and so forth until the $900 is created, or
2) can A hold the $100 and create $900 worth of loans straight away?
And if it’s 2) wouldn’t institution B then be able to create $9,000 of loans straight away from the $900!?!?
Brett
npub1ra…9wc7d
2024-09-06 03:29:51
in reply to nevent1q…63s7
Author Public Key
npub1ramk2jj97aranaep3ln3fjlmupmkr2fpp2qvp583us3jj4jsn5ysd9wc7dPublished at
2024-09-06 03:29:51Event JSON
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"content": "Question though nostr:npub1cj94enk44kn5mvrcma4sp7jnlsgnn4em7rk3dh3jt4fzyqs3m02s560efa !\n\nHow exactly does it work?\n\n1) $100 dollars deposited at institution A, A keeps $10 (with a 10% reserve ratio), and lends out $90, the $90 gets deposited at B, who keeps $9 and lends out $81, and so on and so forth until the $900 is created, or\n\n2) can A hold the $100 and create $900 worth of loans straight away?\n\nAnd if it’s 2) wouldn’t institution B then be able to create $9,000 of loans straight away from the $900!?!?",
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