* You deposit $1000.
* The bank holds on to a *fraction* of it, hence the name. Say they hold on to $100.
* The bank loans out the remaining $900 to someone.
* That person repays the loan and ends up paying back both the $900, and $100 in interest.
The bank *made a profit* but did not *print money*. The bank’s profit came from someone giving them money.
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