Introduction to Bank Leveraging


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How Banks make money on peoples deposits
Covered in this video:
  • Canadian banks use a fractional reserve system
  • People’s deposits make a certain percentage return for them
  • The banks then lend out the funds and double the percentage
  • The last stop for the deposits is the money is loaned out through fractional leveraging which can return 2000%. That is why the banks make such large profits.


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