Now, what does this issue mean? So banks, big banks, they store reserves and they deposit reserves with the Federal Reserve. Now, the Federal Reserve was created in 1913, and from … There's actually no requirement at all [for banks to keep reserves with the Fed]. … you're a big bank, let's say you've got $100 billion in deposits, you were required to keep $10 billion with the Fed. You didn't get paid any interest on it. (14:37–14:44)
CLAIM
Asserts that there is no reserve requirement for banks to keep money with the Federal Reserve.
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