4 ms·

Why do you believe some entity needs the cash now?

• robjan 7y ago
  Other entities may not forgive the banks for failing to make repayments on their loans. There are also instruments such as bonds and fixed income which may be backed by mortgages.
  • deleted 7y ago
    [deleted]
  • ptah 7y ago
    the money is not from other entities. it is literally made up based on a fraction of the reserves the bank holds. https://en.wikipedia.org/wiki/Fractional-reserve_banking https://en.wikipedia.org/wiki/Fractional-reserve_banking