How the Banks Lend Up to Ten Times of What They Hold in Reserves

It does not take a rocket scientist to figure out how the economy runs. Think about it logically, the Federal Reserve Bank simply prints out a pre defined number of cash each financial year. This money is then accordingly distributed according to a carefully thought out plan, or at least that is what they want you to think. Now it doesn't take a financial expert to figure this one out that if you already know the amount of money that is currently circulating your economy, how is it possible for banks and lending companies to lend you money when they know that it is impossible to repay back.
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