Understanding the Fractional Reserve US Banking System
The following infographic explains how banks make money from the deposits of customers. Fractional Reserve Banking is a banking system where banks keep a fraction of deposits from a customer, then use the rest for loans to other customers.
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Assessment
Wiki: http://en.wikipedia.org/wiki/Fractional-reserve_banking
More:
- Short Sale versus Mortgage Foreclosure
- Video on Physician Loans and Doctor Mortgages [Why Over-Pay Big Banks?]
- On the Emotional and Financial Returns of Paying Off the Mortgage
- Rethinking the Reverse Mortgage Paradigm
- Using Home Mortgage Brokers
Conclusion
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Filed under: Financial Planning, Funding Basics | Tagged: banks, FRAC, Fractional Reserve Banking System, home loans, home mortgages, mortgage brokers | 11 Comments »
















