Why are banks able to maintain reserves that are only a fraction of the demand and saving

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Why are banks able to maintain reserves that are only a fraction of the demand and saving deposits of their customers? Is your money safe in a bank? Why or why not?

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Macroeconomics Private And Public Choice

ISBN: 9780357134009

17th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

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Question Posted: Oct 06, 2023 10:01 AM

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Why are banks able to maintain reserves that are only a fraction of the demand and saving

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While the customers of a bank are constantly making deposits and withdrawals these will tend to roug...View the full answer

Macroeconomics Private And Public Choice

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