You're changing the subject. We were talking about Fractional Reserve Banking.
That's when a bank accepts deposits, say $100, and loans out some and reserves the rest.
If the reserve requirement is 10%, they can loan $90 of the $100 deposit and reserve the rest, $10.
I don't know where your claim, "Corporate bonds are valued at 1000 per while Municpals are valued at 5000 per and Federal are valued at 10,000 per" came from, but I've never seen anything like that. If you have a site you took that from, please provide it.
By the way, if a bank securitizes and sells a loan, it doesn't have to hold a reserve against it, so it has nothing to do with FRB.
OK except banks don't ONLY loan on Cash Deposits they also loan on bank assets further Depositors can also complicate the issue by using these REVALUED assets as collateral for loans thus inflating the amount the are allowed to lend. (If I take as collateral a REVALUED asset that is worth 100 but actually is worth only 10 dollars then presto 90 Bucks was created out of thin air and its all Okey Dokey with the FED)
"By the way, if a bank securitizes and sells a loan, it doesn't have to hold a reserve against it, so it has nothing to do with FRB."
hahahahah OK who buys the new higher valued asset? (Answer Another Bank)
And Now that Bank who purchased that repackaged asset CAN LEND MORE MONEY based on an asset that had its underlying value changed yet nothing really happened except they put a new coat of paint on that lemon of a car.