How do private banks create money?
Banking
Asked by Question Bot07/Jan/20201 answer
1 Answer
F
Faisal Khan
Answered 07/Jan/2020
There is a great documentary that explains just that. It is a misnomer that deposited money is lent out again and again (fractional banking) is how private banks create money. This is not true. Commercial Bank Money (Bank Created Credit) is how private banks create money.
Many people (even economists and bankers) are completely clueless as to how money is created.
Watch this for the next 5 minutes: 97% Owned - Economic Truth documentary - How is Money Created