only 10 %
reply
The US dropped it's reserve requirements a few years ago. I don't think they still hold onto 10%.
reply
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.
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.
reply
With the money supply falling, stuffing fiat under mattresses might make a comeback.
reply
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
reply
reply