![](/static/253f0d9b/assets/icons/icon-96x96.png)
![](https://lemmy.ml/pictrs/image/d3d059e3-fa3d-45af-ac93-ac894beba378.png)
Holy shit. I get it! That’s a great explanation and I really appreciate your taking the time to type it all out. I’m glad we don’t have Lemmy medallions to award but, if we did, I’d give you one. I now see how a 100% reserve requirement, i.e., all deposits completely backed in cash, would entirely change banking.
The only thing that feels weird to me is the virtual money the bank creates doesn’t seem go away once it’s paid back. For example, if a mini bank only had $1000 and lent $900 with a 10% reserve, they’d end up with $1900 once the loan is repaid (ignoring interest). Or does the $900 they lent create a -$900 for the bank that is cancelled through repayment?
I was coming to post the same. Those fucking clickers were so stupid and overpriced, all so my biochem professor could poll the class AND grade everyone on their results. Results to questions about material that was JUST taught in the same lesson. Good thing everyone benefits equally from lecture, right? Fuck that guy.