pull down to refresh
The US dropped it's reserve requirements a few years ago. I don't think they still hold onto 10%.
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.
from: https://www.investopedia.com/terms/r/requiredreserves.asp
That was a fun little detail they tried to slip through unnoticed.
I wasn't aware of this.
What is tweet ?
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.
With the money supply falling, stuffing fiat under mattresses might make a comeback.
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
only 10 %