Banking institutions create brand brand new cash each time they make loans. 97% of this cash throughout the economy today exists as bank deposits, whilst simply 3% is real money. This video that is short:
The income that banking institutions create is not the paper cash that bears the logo design regarding the government-owned Bank of England. Continue reading All of the cash within our economy is done by banking institutions, by means of bank deposits – the figures that can be found in your account.