I’ve tried Googling this but can’t come up with a satisfactory answer. Most articles I’ve read simply say “large banks buy money from the Federal Reserve’s banks”. But how does a private bank buy money?
Hypothetically, let’s say I own a bank. People have stored $10 billion in my bank. I invest their money in the market, loan it out to others, etc. as my business.
I want more money, so I can make bigger loans. How do I purchase more money with money? How can I purchase money at all? Wouldn’t I just be trading a dollar for a new dollar? Or does the fed subsidize private banks by giving them money at a discount? In which case, how do I get in on that racket?
Thanks.
Submitted September 17, 2019 at 05:59PM by AntiqueAccount https://ift.tt/2AnMcYK
