Send a Quote Enter a brief message. SendOk2 “Because of 'fractional' reserve system, banks, as a whole, can expand our money supply several times, by making loans and investments.” ~ Federal Reserve Bank of New York Source: The Story of Banks, p.5. (2006), Story by Gail Donovan; Art by Norman Nodel, Published by Federal Reserve Bank of New Yorksee http://www.newyorkfed.org/publications/result.cfm?comics=1