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Park and Ride Lots Never enough parking....

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For every $10 deposited in the banking system, the banks can lend 10 times the initial deposit with a fractional reserve requirement of 20 per cent.  The fractional reserve requirement is the amount the banks are required to keep on hand.  Of the initial $10 deposit, only $2 must be kept on hand.  The other $8 can be loaned.  The recipient of the $8 loan usually spends it.  The receiver of the $8 eventually deposits in his or her bank.  That bank keeps $1.60 and lends out $6.40.  The process repeats itself.  And it keeps repeating itself until the initial deposit has expanded to $100 in loans and deposits.      This is how the banking system creates money.  It is a critical economic process.  Without it our economy could not function.  It is not a pyramid scheme. The fractional deposit reserve requirement is one way the Federal Reserve can control the money supply.  If there is too much money in the economy, which can fuel inflation, the Fed can raise the deposit requirement, thereby decreasing the amount of money in circulation.  As an aside, DART is considering requiring its patrons to pay for parking at its light rail parking lots.  It seems that the majority of the citizenry, who do not use DART, is not happy about subsidizing transit patron parking.
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