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"depositors lend their money to a bank, for which they are paid interest, and banks lend that money out" ... isn't how banking actually works. https://www.ban
by esja 4y ago
"depositors lend their money to a bank, for which they are paid interest, and banks lend that money out"
... isn't how banking actually works.
https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m...
- sramsay 4y agoYeah, it's the "and banks lend that money out" part that is wrong, and it's why banking is way, way more complex than people realize. There's a lot of "it's all very simple" going around (here and elsewhere). It is not simple.