2 ms·
>If the stock market crashes the same year you wanted to buy your car the you will need to obtain liquidity by borrowing money from a bank (remember those stupi
by modo_mario 7y ago
>If the stock market crashes the same year you wanted to buy your car the you will need to obtain liquidity by borrowing money from a bank (remember those stupid scrooge mcducks swimming in their pile of gold? now you're begging them to give you money)
Are banks not able to in effect create money in todays system?
- wtmt 7y agoBanks can create an amount of money beyond what they get in deposits, but that’s limited by the fractional reserve system and the amount they hold as deposits (this makes some simple assumptions, but is mostly true). They cannot create an infinite amount of money by themselves (without a central bank’s intervention).