@spillnoow: 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 @spillnoow for more content like this. #banking #finances #entrepreneur #wealth #success 🏆 $50,000 USDC xStocks Trading Competition is LIVE! Trade tokenized stocks on Solflare and compete for the $50K winner prize. 📈💰 Join now: solflare.com

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