Ever wondered what happens to your money in a bank? Most people think banks just store cash and lend it out, but modern banks create new money simply by issuing loans—no printing presses, no vaults, just numbers in accounts. In this video, we explain how fractional reserve banking works, why your deposits aren’t the source of loans, how banks make and lose money, and what really limits their lending. Learn how credit drives the economy and why banking crises happen.
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