One question I hear often about full reserve banking is how a bank would supply capital (money) for a person borrowing a mortgage, or a loan towards buying a house. Since the bank can only loan out money that is deposited, and untouched, by others, some people see a problem in depositing money that is tied up for 30 years. Hopefully this article explains how such a system would work, and why it would be better than the current fractional reserve banking and central banking system.

Read the rest of this article at the full reserve banking site.