Learn About Money – Part 3: How Is Money Really Made By Banks?

Learn About Money – Part 3: How Is Money Really Made By Banks?

How is money really made by banks? (Part 3 of 6)

Information covered in this video:

Three Forms of Money

The Balloon Model

What determines the amount of money in the economy?

Exactly how banks create money out of nothing

Inter-bank settlement: One payment

Inter-bank settlement: Multiple payments

Fractional reserve banking

Reserve accounts & Real-time gross settlement