3 ms·
The transaction is balanced in isolation, but the initial part (actually giving the money) is allowed to be negative for the bank as long as they're within thei
by makeitdouble 2y ago
The transaction is balanced in isolation, but the initial part (actually giving the money) is allowed to be negative for the bank as long as they're within their leverage ratio.
So yes, as a whole the bank gives money from thin air.