have you ever wondered what the bank
does with your money so when you deposit
your $100 in your bank account most
banks are obligated to keep at least $10
of your $100 in their bank account now
what they do with the rest is that they
either lend that $90 to another customer
or use it as a collateral to borrow
money from the Federal Reserve they'll
use your $100 to borrow $900 from
Federal Reserve which then your bank
will lend the $900 out to other
customers or you in forms of mortgages
credit cards or auto loans for doing
this of course the bank gives you a
little bit of interest but in reality
the banks don't use their own money to
make money they use yours