If you deposit $10,000 into a bank 🏦
Here’s what happens…
The bank set asides a 10% and loans out the rest of your money.
How it works, say another person comes in and asks for a car loan...
Not exactly.
In step 1, they set aside the whole $10k, declare that 10%, and loan out $90k they don't have.
So by the end, it's not $90k, but almost a million.
In step 1, they set aside the whole $10k, declare that 10%, and loan out $90k they don't have.
So by the end, it's not $90k, but almost a million.
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