Bank account Quote by Yuval Noah Harari
““Banks are allowed to loan $10 for every dollar they actually possess, which means that 90 percent of all the money in our bank accounts is not covered by actual coins and notes.””
About This Quote
Source Book: Homo Deus by Yuval Noah Harari, 2015
Banks can create money far beyond physical cash, showing modern economies rely on fractional reserve banking.
In simple terms: Banks lend more than they have in cash.
Understand money creation limits.
Themes
Mood
Type
When to use this quote
- banking regulation
- personal budgeting
- investment decisions
- policy debates
Key Concepts
Questions to Reflect On
- How does this affect your view of savings?
- What safeguards could improve stability?
The system can fail if confidence collapses.