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> But they'll need assets on the right side of their balance sheet. [citation needed]
by andrepd 5y ago
> But they'll need assets on the right side of their balance sheet.
[citation needed]
- vishnugupta 5y agohttps://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m... "Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money." So on the asset is a loan made by the bank.
- nradov 5y agoWhat kind of citation are you looking for? That's not a controversial issue, it's just the basic reality of how fractional reserve banking has always worked. I'm sure that was covered in your Econ 101 class so open up your old textbook.