How money gets destroyed – (Part 6 of 6)
Remember how new money is created when a bank makes a loan?
Well when someone repays the loan, the opposite process happens, and money is actually destroyed.
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