Why Is the Following Statement Not Philosophical? "I Believe It

question 32

Short Answer

Why is the following statement not philosophical? "I believe it because it is in the Bible."

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Definitions:

Reserve Requirement

The fraction of deposits that banks are required to hold in reserve and not lend out, which is used by central banks as a tool to control the money supply.

Deposits

Funds placed into an account at a banking institution for safekeeping and potential interest accrual.

Reserve Ratio

The reserve ratio is the fraction of deposits that a bank is required to hold in reserve and not lend out, set by the central bank to control the money supply.

Money Multiplier

A concept that describes the amount of money that banks can generate with each dollar of reserves.