2 ms·
Well, the very first assertion "Banks make currency" is not accurate in the US (the context of the article). Currency is "made" by a combination of the US Treas
by sjbase 9y ago
Well, the very first assertion "Banks make currency" is not accurate in the US (the context of the article). Currency is "made" by a combination of the US Treasury and policy set by the federal reserve. The fed is a bank of sorts, but in no sense is a bank like JPMC creating currency.
- transverse 9y agohttps://en.wikipedia.org/wiki/File:Fractional_reserve_lending_varyingrates_100base.jpg https://en.wikipedia.org/wiki/File:Fractional_reserve_lendin... shows how banks effectively expand currency. It's linked in https://en.wikipedia.org/wiki/Money_multiplier https://en.wikipedia.org/wiki/Money_multiplier