That is not correct. A bank does not print money, only the treasury can. But I see what you are getting at. A bank borrows 1 $mil from a Federal Reserve Bank and lends out $2m to clients for various loan instruments.
I don't know how true that is as the topic is above my head. Banks certainly leverage their investments (fractional reserve spending) for higher returns but I do not know exactly how the process works.
Re: Illuminati
Member #: 47533
Registered: 7/27/2006
Posted:
145
Name:
John G
Company:
G Networking
Occupation:
Whore
Location:
Cali
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