initial debt Tax Financial Banking



Tax Financial Banking Archive

What happens when someone pays his debt in a fractional-reserve banking system?

What happens when someone pays his debt in the fractional-reserve banking system?

Is usually his past debt subtracted from the haven or additionally all successive debts which was loaned to alternative people with his primary debt?

For instance, the chairman A borrows 100$ afterwards it becomes partial of the reserve, afterwards the chairman B can borrows from his deposition 80$, afterwards the chairman C 64$, since the haven order of 10% for banks.