- July 26th, 2024
Tag: Demystifying Banking: What Do Banks Really Do with the Money in Your Checking Account?
![Banks](https://theasialive.com/wp-content/uploads/2023/10/Banks-jpg.webp)
Banks handle checking account funds as a liability, with deposits coming from various sources. They operate on a fractional reserve system, keeping only a fraction of deposited funds in reserve and lending out the rest. Central banks set reserve requirements,...