Especially when I learned that banks only keep a small amount in their vault
1920s thinking? What money in the vault?
When a company deposits a paycheck for an employee, does someone run down to the bank with cash? No. So how are loans going to be backed with cash when there was none involved in the deposit.
This is why I say there are so many misunderstandings since people have ideas, mostly spewed by economists, that are completely outdated.
The quicker people realize we have been using ledger based money for a century, the better off they will be.
More like 3rd world country. There are still a not so many, yet not so few money in our bank's vaults. That's why big withdrawals need to be informed beforehand.
I've actually seen this happen loads of times, especially with small companies. They send their messengers to do it, and I see them with wads of cash depositing to the teller.
Banks dont want cash. It is dirty, they have to store it, and a pain in the ass to move around.
If they are in a cash business like restaurants, sure. However, they are running to employees banks with cash to had the teller and saying deposit this in Joe Smiths account, it is his paycheck.