0 sats \ 1 reply \ @drlh 18 Sep \ on: How much financial education did you get growing up? bitcoin
In our school a bank assistant explained why banks gives you interest when you deposit and hold money in the bank: they use your monis for investment, more precisely as a someone else's credit. Nobody raised an eyebrow. But hey free 2.5 buccs for opening an account with a voucher!
Also he gave some fuzzy example in ancient time, when monis were stored in temples people payed for the protection. But people didn't like to pay, and safeguards didn't like that monis were staying without a purpose. So in exchange for some interest, safeguards could invest a fraction of monis into something else while they're in account. Did fractional reserve exist in ancient time? Could someone explain please?
That's all my school's financial education, besides some math problems.
of course now, when you get a loan in the bank, they literally create the money out of thin air for that loan, it's not even coming from deposits.
would be funny to see someone explain fractional reserves to a bunch of ten year olds tho
fractional reserves happened in the past though, it was just called the bank lying about how many deposits it had on hand
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