4 ms·
Bank no longer need customer’s money. If I record correctly, bank can borrow from the Fed and turn around and leverage up and buy bonds and notes. Basically ri
by wdn 9y ago
Bank no longer need customer’s money.
If I record correctly, bank can borrow from the Fed and turn around and leverage up and buy bonds and notes. Basically risk free money for banks.
- runeks 9y agoA commercial bank needs some sort of collateral, e.g. customer deposits, in order to borrow money from the central bank.