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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