When you deposit your money with a bank, they don’t keep it.
They loan it out to other people to make more money.
This process of creating money with loans is called fractional reserve banking.
With fractional-reserve banking, Banks only keep a fraction of deposits in the Bank.
The rest of the deposits are used to make loans.
Fractional-reserve banking is debt-based money creation.
They call Banks Lenders because that's what they do with your money. You save it, they lend it.
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They loan it out to other people to make more money.
This process of creating money with loans is called fractional reserve banking.
With fractional-reserve banking, Banks only keep a fraction of deposits in the Bank.
The rest of the deposits are used to make loans.
Fractional-reserve banking is debt-based money creation.
They call Banks Lenders because that's what they do with your money. You save it, they lend it.
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