Why are banks able to lend a portion of any funds deposited


Problem

1. Why are banks able to lend a portion of any funds deposited with them?

2. Why are banks unable to lend sums in excess of the amount deposited with them?

3. Why are sight bank deposits money?

4. Are cheques money?

 

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Microeconomics: Why are banks able to lend a portion of any funds deposited
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