The money multiplier theory is one of the biggest myths in economics. Many textbooks claim that banks lend out a fraction of deposits, multiplying money through fractional reserve banking. But modern ...

What is a bank? A bank is a financial institution authorized to provide service options for customers who want to save, borrow or accrue more money. Banks typically accept deposits from, and offer ...

Banks do more than just store money - they create money every time they issue loans. This ability to generate credit fuels economic growth, but it also creates dangerous financial cycles that can lead ...