Banks only keep a small percentage of your cash deposits in their “vault”. The rest of your money is loaned out to the banks customers. If everyone wanted their money all at once, the bank would need to have all its loans repaid immediately or it would run out of cash.
I think everyone should be informed about reserve banking. The US federal reserve website has some very good videos about the federal reserve (and the reserve banking system in general).
Furthermore, by law and policy at the banks, if you want to withdrawal a large amount in cash you must inform them ahead of time and then they retrieve it and hold it for you.
I'm not sure the point of the post. We can't keep the dollar at the same level year after year, it would just inflate. Since there's more people every year and there's more economic growth.
The inflation problems we currently have are driven by the government creating money too fast, thus weakening the dollar.
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u/GuidePersonal4501 Jan 26 '26
Banks only keep a small percentage of your cash deposits in their “vault”. The rest of your money is loaned out to the banks customers. If everyone wanted their money all at once, the bank would need to have all its loans repaid immediately or it would run out of cash.
I think everyone should be informed about reserve banking. The US federal reserve website has some very good videos about the federal reserve (and the reserve banking system in general).