Re:Former President Trump is projected to win the presidency
by ArnoVW on Wednesday November 06, 2024 @12:09PM
(#42065458)
Actually, banks can "create" money from nowhere. It's called fractional-reserve banking. When you deposit money into a bank, the bank is required to keep only a fraction of that deposit as reserves. The rest can be used for lending.
The exact fraction is determined by the central bank's reserve requirements. And since 2020 it has been set to... zero percent.
So essentially US banks can infinitely create money.
The exact fraction is determined by the central bank's reserve requirements. And since 2020 it has been set to... zero percent.
So essentially US banks can infinitely create money.