I forget what it's called but the label for how banks work in the US that describes how money is created out of thin air...

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Answered I forget what it's called but the label for how banks work in the US that describes how money is created out of thin air...

Something to do with how a minimum amount is kept per deposit. I seriously am such a nigger.retard right now I can't remember the term.

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It's important to keep in mind that as a loan is paid back the magic money evaporates.

Suppose Bob deposited $100, then the bank loaned Larry $90. The bank's balance sheet shows $100 in deposits and $90 in outstanding debt. Now suppose Larry pays the bank $50. Their balance sheet now reflects $100 in deposits and $40 in outstanding debt.

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