The Banker Who Sold the Same Coin Twice

In economics, "Fractional Reserve Banking" is a system where banks keep only a small portion of their deposits as physical cash while lending out the rest to earn interest. This creates a continuous cycle where the same money is spent, redeposited, and lent out again, which multiplies the total amount of currency circulating in the economy. While this process allows for more loans and financial growth, it relies on the stability of knowing that most people will not try to withdraw their entire balance at the same time.

Видео The Banker Who Sold the Same Coin Twice канала City of Finance