Re:The Fed stalls the creation of a bank with a novel busine...
by neilwilson on Saturday September 22, 2018 @11:01AM
(#18046235)
"When I opened my bank account, I deposited say £5000 cash. What does the bank do with this money?"
It burns it. Probably quite literally.
The cash represents a transfer from the central bank into the commercial bank's deposit account at the central bank - for which it receives an interest rate.
Cash is just a receipt for deposits held at the central bank.
It burns it. Probably quite literally.
The cash represents a transfer from the central bank into the commercial bank's deposit account at the central bank - for which it receives an interest rate.
Cash is just a receipt for deposits held at the central bank.