Fractional Reserve Banking

A customer deposits fifty thousand. Another needs a four hundred fifty thousand mortgage. The bank lends four hundred fifty thousand while owning fifty thousand. It created four hundred thousand that didn't exist. Fractional reserve allows banks to lend percentages. Regulatory requirements mandate ten to fifteen percent reserve. A bank holding fifty million can lend forty-two to forty-five million. Money appears multiplied. The system manufactures money from nothing. A single dollar supports eight to ten dollars of loans. The global economy runs on ledger entries, not physical assets. Depositors and borrowers access funds simultaneously. Money supply grew without central banks printing.