Banks don't lend out your savings. They create new money.

Question on this card

What happens when a bank grants a loan?

1. It transfers money from its vault
2. It borrows the money from the central bank
3. It creates new bank money
4. It takes it from other savings accounts

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This card belongs to the topic Money & Work. Every card is short, cites a source and can be saved – due ones come back by themselves later.

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