How do private banks create money?

Asked Jan 7, 2020· 1 answer
Faisal KhanAnswered Jan 7, 2020

There is a great documentary that explains just that. It is a misnomer that deposited money is lent out again and again (fractional banking) is how private banks create money. This is not true. Commercial Bank Money (Bank Created Credit) is how private banks create money.

Many people (even economists and bankers) are completely clueless as to how money is created.

Watch this for the next 5 minutes: 97% Owned - Economic Truth documentary - How is Money Created

https://youtu.be/XcGh1Dex4Yo?t=786

Money CreationCommercial Bank MoneyMoney SupplyFinancial Theory
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