Universities teach the exact opposite of the truth, of how banks create loans.
New loans are simply ADDED to the bank’s deposit account. by IWB · June 25, 2015 Share4 Tweet8 0 Share0 On page 2 of the linked article:...
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Commercial banks create the money they lend out of nothing. They do not loan out the depositors’ mon
This is my understanding of how a bank works. If you just need to keep 10% of total loans and deposits as reserves, you can make as much...