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A totally normal thing (lemmy.world)

submitted 2 weeks ago by The_Picard_Maneuver@lemmy.world to c/memes@lemmy.world

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[–] Anticorp@lemmy.world 0 points 2 weeks ago (1 children)

They don't reduce your available balance because they're constantly juggling the money around. But they're not producing money out of thin air. They can't loan more than they hold in deposits.

[–] themoonisacheese@sh.itjust.works 9 points 2 weeks ago

Uh... Yeah they can? Look up fractional reserve banking.