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Thursday, September 8, 2016

Under the fractional reserve system, the funds do not exist - they are virtual

Ad Majorem.....Wealth Builders

Image result for fractional reserve banking diagram

Rizal Philippines
September 8, 2016

Under the fractional reserve system and the currency system under the fiat system, a P100 deposited for banks with required reserve of 3% can multiply up to P3,333  Only P100 is the only real thing in the system.

Hence the when the financial system collapses, there is nothing left.

The whole financial system is a magic - virtual

Image result for fractional reserve banking diagram


Image result for fractional reserve banking diagram

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