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Wow, a business article saying money sitting in a bank account does nothing? Are they that clueless? It is leveraged many times over and invested and used by th
by lnanek2 12y ago
Wow, a business article saying money sitting in a bank account does nothing? Are they that clueless? It is leveraged many times over and invested and used by the bank. Putting a dollar in the bank lets the bank pretend they have forty.
- chrisbennet 12y agoWe were taught in school that a bank takes deposits and lends them out as loans but that's not how it really works. When a bank makes a house loan for example, the house is added to their balance sheet and it becomes an asset that they can lend again, minus a fraction.