Navigate through fractional reserve banking scenarios and make critical decisions! Learn about reserve requirements, money creation, the multiplier effect, bank runs, and how fractional reserve banking enables economic growth.
MONEY:$1,000
Scenario 1 of 12
The Reserve Requirement
You deposit $1,000 at a bank. The bank is required to keep 10% ($100) as reserves. The bank can lend out the remaining $900.
Should banks keep reserves as required by law?
Press Y for YES or N for NO