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Learn About Money – Part 5: Do Banks Create Money or Just Credit?

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Do banks create money or just credit? – (Part 5 of 6)

You might hear some people say that “Banks don’t create money — they just create credit”.

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