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11 sats \ 13 replies \ @bitcointerest 18 Dec 2023 \ on: Stacker Saloon
Is this true?
Asking for a friend.
https://m.stacker.news/8560
only 10 %
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The US dropped it's reserve requirements a few years ago. I don't think they still hold onto 10%.
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WTF !
In response to the COVID-19 pandemic, the Federal Reserve reduced the reserve requirement ratio to zero across all deposit tiers, effective March 26, 2020. The aim of this reduction was to jump-start the economy by allowing banks to use additional liquidity to lend to individuals and businesses.
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That was a fun little detail they tried to slip through unnoticed.
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I wasn't aware of this.
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What is tweet ?
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Tweet, post, comment.
They are all grouped into this meme.
I think I've read that somewhere. That's crazy, if true. Saving money in a piggybank seems less riskier than leaving your money in a bank. We are living in unprecedented times.
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With the money supply falling, stuffing fiat under mattresses might make a comeback.
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Fractional-reserve banking.
- You deposit your hard earned fiat into your bank account.
- The bank lends out 90% of your funds and keep a 10% reserve.
- The bank earns interest on loan.
- This cycle repeats with the person borrowing the money from the bank.
The interest earned/created by banks is how they create their monopoly currency.
https://assignmentpoint.com/wp-content/uploads/2020/06/Fractional-reserve-banking.jpg
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