I'm not saying you're wrong. It just seems like something is missing from the picture in your explanation.
When I opened my bank account, I deposited say £5000 cash. What does the bank do with this money?
I was under the impression that the bank doesn't actually keep this £5000 in cash, only £500 maybe, and uses the rest to lend money, but you seem to be saying that they can't actually use my deposit.
I'm not saying you're wrong. It just seems like something is missing from the picture in your explanation.
When I opened my bank account, I deposited say £5000 cash. What does the bank do with this money?
I was under the impression that the bank doesn't actually keep this £5000 in cash, only £500 maybe, and uses the rest to lend money, but you seem to be saying that they can't actually use my deposit.