@richmanparadise: Your bank deposit doesn't just sit in a vault. Most people believe the money they deposit stays in their account until they withdraw it. In reality, banks use a system called fractional reserve banking, where a portion of customer deposits is used to make loans to other people and businesses. For example, if you deposit $1,000, the bank can lend much of that money to someone else. That money is then spent, deposited into another bank, and lent out again. This process expands the amount of money circulating throughout the economy. Supporters say this system fuels economic growth by making credit available. Critics argue it creates too much debt, expands the money supply through lending, and makes the financial system more vulnerable when confidence in banks falls. Whether you support it or not, one thing is certain. Understanding what happens to your money after you deposit it is one of the most important lessons in finance. Follow for more content like this. #banking #finances #entrepreneur #wealth #success
RichmanParadise
Region: CA
Thursday 06 August 2026 02:08:19 GMT
Music
Download
Comments
Nkunzi Malanga :
Until (theoretically speaking) everyone demands all their money at the same time and the whole thing collapses
2026-09-23 09:59:42
6
Gherie Shimondi :
But they're smart, people are foolish.
2026-09-23 09:55:08
0
Abolfazl Zahedi :
That is inflation
2026-09-23 10:23:26
0
Tazran :
Yes that’s how it works. Loan is future money to finance today works. And trust is the key. Imagine printing money to finance a very profitable business, when the business successfully and pay off the loan in future. That out of nothing future new printed money now equals the real productivity.. and we called it growth.. because the loans have create something from nothing.. now let’s say some people borrow to spend to consume without building anything or producing anything to profit and pay back. The money printed becomes more than what it creates. The money has lost the value. First case the money from not creating value. The second just wasted..
2026-09-23 04:51:37
1
Tikashi :
That’s why you spend everything you make and don’t put it in the bank. Problem solved. 😅😅😅
2026-09-23 07:09:58
2
Redragonious :
That’s not an accurate number bc your not showing the monthly fees😏
2026-09-23 03:57:07
1
sir.constaple :
So all those people are buying cars that’s crazy
2026-09-21 01:02:59
6
The Magnates Society🌐 :
It's called the Fractional Reserve Banking system
2026-08-06 04:11:40
19
ub20190 :
So what if i wanna take out my 10,000 before the bank made 90,000?
2026-09-21 04:06:33
1
Gokulan :
It takes few years for them to pay back. By the time they turn the 10k to 90k in let’s say 5 years , the bank have expenses and need to pay monthly to their employees. Don’t confuse people
2026-09-21 08:17:06
0
Mr.Bothersome :
this is called the fractional reserve banking system. the money did not increase in circulation only the credit is and those two are different. those credit will just cancel out in the future when it is paid, written up or cancelled themselves.
2026-09-21 08:37:28
0
Li0z :
maybe we should create our own Bank
2026-09-13 03:18:18
1
FamousFame :
Bank don’t do fractional reserve anymore - they actually just create money when you want to borrow it…
2026-08-06 03:18:25
1
Bob :
Crooks
2026-09-21 06:58:24
1
OraWildlight 🇦🇺💚🌏🐐♊️ :
So if our money is just a loan - how can they tax us on it? Isn’t that what rich people do. Gets a loan off an asset so they don’t have to. 😂
2026-08-18 22:44:14
0
Abolfazl Zahedi :
That is inflation
2026-09-23 10:22:58
0
Omar :
but banks are not in the business of loans they are in the business of buying and selling securities that deceptive practice or am I wrong
2026-08-08 22:34:35
1
Abdul Rasheed :
this outdated in 2019 December
2026-08-31 11:13:18
0
Justus ✪ Data Scientist :
People work hard to pay the debts, and the loans help in liquidating the economy, so both keep the economy running.
All on only one confidence principle: The real money owner won't come to make the withdraw at once. Even if he did so, they won't give him cash that easily. They make him file paperwork to delay the withdrawal process, they also set minimum deposits and minimum balance so that you don't withdraw and that's why they Promote the use of Digital currency because the real money and fake/created money keep on moving btn people smoothly without any fear that all people will come and withdraw all their cash at once coz people now have confidence in the digital money and they transact in it, so no need for cash. And a lot of cash is also a crime btw. Just a system.
2026-09-20 03:57:24
1
Luca🇨🇦🇺🇸 :
If you deposit 10 k today , you are selling some good stuff , !!!
2026-08-06 02:19:30
1
blbasuke benqabelani nje nayo ngona nabo akyona eyabo mxm.." awu khwalifayi bhuti"
2026-09-22 09:18:31
0
sismabda62a :
Delusional 😂
2026-09-21 08:43:24
0
TStarkkkkkk :
...fak banks
2026-09-21 02:18:34
0
maaaanrobbuqaa :
Jewish creation, brilliant MF
2026-08-22 03:05:29
0
babloo69 :
😳😳😳
2026-09-22 18:15:37
0
To see more videos from user @richmanparadise, please go to the Tikwm
homepage.