43 | Fractional Reserve Banking
The financial system uses the base money to generate "deposit money," sometimes called "inside money," through a process of fractional reserve banking.
What is the real value of a dollar? You think that a dollar bill is money and that banks are where your cash is stored and safeguarded. Well, you’re wrong. Like, really wrong.
What do banks do with our deposits? You think that banks are where your cash is stored and safeguard and that a dollar bill is money. Well, you’re wrong. Like, really wrong.
Have you ever wondered why gold and silver were used as money? Why those specific metals over other commodities? This video answers these questions and outlines some of the basics of monetary economics.
Five reporters stumbled on what seems like a basic question: What is money? The unsettling answer they found: Money is fiction.