Would we determine which fractional haven promissory note is a means of a commercial operation cycle? The banks loan out pot which they do not have as well as they have to need aloft rates of seductiveness than they would get in a batch system. This creates a undo in between what things have been value as well as what they have been valued at. This is how a froth form. Then a retrogression contingency wash out out a bad debt. What would be a values as well as drawbacks of full haven banking?
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"Full reserve" banking can’t exist. If I have to keep all the deposited money on hand, then I can’t make loans and earn interest to cover my cost of doing business and pay interest on deposits.
Besides, this has nothing to do with the business cycle.