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bossy22

(3,547 posts)

11. umm....you just described fractional reserve banking

Sun Dec 16, 2012, 11:31 PM

Dec 2012

from wikipedia
Full-reserve banking, also known as 100% reserve banking, refers to a banking practice in which the full amount of each depositor's funds is kept in reserve, as cash, ready for immediate withdrawal on demand. In other words, funds deposited in checking accounts or demand deposits would not be loaned out by the bank because the depositor has the legal right to withdraw their funds immediately upon demand.

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Icelandic Parliament investigating Full Reserve Banking [View all] tama Dec 2012 OP

I always wondered how this would work in a modern economy bossy22 Dec 2012 #1

Why? tama Dec 2012 #4

exactly bossy22 Dec 2012 #8

This message was self-deleted by its author tama Dec 2012 #13

Does full reserve banking imply that we pay banks to hold onto our money? Jim__ Dec 2012 #2

We already pay banks for various services and interest for loans tama Dec 2012 #3

But we don't usually pay them to hold our deposits. Jim__ Dec 2012 #9

No, nothing illegal tama Dec 2012 #14

it's clear to me that you don't understand modern banking bossy22 Dec 2012 #10

What we have in this country Dickster Dec 2012 #5

umm....you just described fractional reserve banking bossy22 Dec 2012 #11

Excellent! hunter Dec 2012 #6

As long as I' here Dickster Dec 2012 #7

you do realize that by law the interest earned on federal reserve assets bossy22 Dec 2012 #12