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Strategies & Market Trends : Booms, Busts, and Recoveries
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To: LLCF who wrote (11796)12/12/2001 2:08:34 PM
From: Ilaine  Read Replies (2) of 74559
 
I didn't drop Money and Banking, I dropped Intro to Accounting (three times). Money and Banking is next semester.

Please explain how a bank can simultaneously maintain 100% reserves and loan deposited money, without the permission of the depositor? How can it do both at the same time?

I think you mean that it can loan out its own capital, and it can loan out capital which was deposited there for the purpose of being loaned.
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