Type of Submission
Podium Presentation
Keywords
Fractional reserve banking, ethics
Abstract
When Deposits are made to a bank, the bank can loan out most of it, while claiming they have the money to pay you back. When you deposit money in a bank, only a fraction of it stays on deposit; the rest is loaned out. When the person receives the loan spends it, money goes to another bank, repeating the process. Ultimately, if the central bank puts $100 of reserves into the FRB system, $1000 of money could enter the economy.
Faculty Sponsor or Advisor’s Name
Jeffrey Haymond
Campus Venue
Stevens Student Center, Room 245
Location
Cedarville, OH
Start Date
4-16-2014 1:00 PM
End Date
4-16-2014 1:20 PM
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
Is Fractional Reserve Banking Necessarily Immoral?
Cedarville, OH
When Deposits are made to a bank, the bank can loan out most of it, while claiming they have the money to pay you back. When you deposit money in a bank, only a fraction of it stays on deposit; the rest is loaned out. When the person receives the loan spends it, money goes to another bank, repeating the process. Ultimately, if the central bank puts $100 of reserves into the FRB system, $1000 of money could enter the economy.
