Banks are cash multipliers. When they receive 1€, they lend 7€. Speaking for EU. The ratio may be higher in the US. That's why the Fed gets so much, because th

Banks are cash multipliers. When they receive 1€, they lend 7€. Speaking for EU. The ratio may be higher in the US. That's why the Fed gets so much, because then it lends to banks, banks lend to businesses and to individuals, usually at a somewhat higher interest rate.