The one that shows a 10% reserve requirement magically turning a $100 deposit into a hair less than $1000?
I get it. Would you 'splain that to the Toddster for me?
I'd do it myself, but clearly my teaching skills aren't up to the challenge.
You might find the chart under the heading “cumulative effect” interesting; under a 20% reserve requirement a $100 deposit creates $357 in new money via loans:
http://en.wikipedia.org/wiki/Fractional-reserve_banking
A lower reserve requirement allows even greater credit expansion.
The one that shows a 10% reserve requirement magically turning a $100 deposit into a hair less than $1000?
I get it. Would you 'splain that to the Toddster for me?
I'd do it myself, but clearly my teaching skills aren't up to the challenge.