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RE: The Mathematics of Fractional Reserve Banking

in #mathematics8 years ago

This is fascinating!

I did not realize that fractional reserve banking could be modeled as an infinite geometric series, but it makes sense.

One Question -- "Sum of Money Lent" when k (bank number) = 4...
Shouldn't that be 368,559,000 rather than 315,414,900?

I was following along with you, and got the same numbers up until that point.
Just wondering if I went wrong somewhere.

Thanks for this eye-opening article!

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What would I do without you fixing all of my math mistakes?

I'm not at your level in math, but I'm smart enough to know I can learn from you if I read your posts carefully and work through the examples you present. Thanks for taking the time to produce quality technical articles!

Who says you can't incentivize quality teachers?

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