Federal Reserve Bank of New York Quote

"Because of 'fractional' reserve system, banks, as a whole,
can expand our money supply several times, by making loans and investments."

by:	Federal Reserve Bank of New York
Source:	The Story of Banks, p.5. (2006), Story by Gail Donovan; Art by Norman Nodel, Published by Federal Reserve Bank of New York see http://www.newyorkfed.org/publications/result.cfm?comics=1
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Categories:	Banking, Economics, Fed, Money
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Reader comments about this quote:

What you will never see in the news is that banks loan nothing but pens to sign notes. Credit is nothing that can be loaned. The Fed said their system of plunder "works only with credit\|" -- Anonymous
-- Anon
Yep -- Mike, Norwalk
Another talking bank...The government has people thinking banks can talk and are printing quotes made by banks???? Foolish quote written by a fool who won't even admit they wrote it. -- G Natural, Bloomsbury
The quote is perfectly correct with one addition, hence the mess we are in. When you allow banks to use the fractional reserve system unregulated the you are asking for trouble. -- RBESRQ
G Natural, the Federal Reserve Banks do publish pamphets and reports often with no reference to an author. We have updated the source with whatever information is found on the booklet. -- Editor, Liberty Quotes
I agree with Robert! -- Waffler, Smith