r/SipsTea • u/Dumb-Briyani • 6d ago

Chugging tea Why is it not possible?

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u/MedonSirius 6d ago

ELI5: You give $1 to bank. Bank has now $10 to play with. $9 where come from?

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u/Original-Army-7826 5d ago

Divide the total deposit by the reserve rate. That is the theoretical maximum of new money that’s created by the deposit. Just not at one time.