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So banks will have accounts at the central bank and/or with other banks. Settlement does not require physical transfer of paper cash, in either case. > Banks c

by 3np 5y ago

So banks will have accounts at the central bank and/or with other banks. Settlement does not require physical transfer of paper cash, in either case. > Banks cannot transfer their own book money. I'm not sure what you mean by this - could you elaborate?

7373737373 5y ago
Were it not for bank regulation, banks could create unlimited amount of credit, as long as they can cover all net outflows