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!
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?