They loaned out more than what needed to cover demand deposits. The semantics is not worth quibbling over. I was only putting in my two cents worth on a discussion on deflation, as my degree is in finance/accounting and I worked as management in various industries including banking.
Have a good evening!
By your definition, any dollar lent out of a demand deposit is too much.
The semantics is not worth quibbling over.
What semantics? I said they can't lend more than they take in. You disagreed.