Money & Banking

Money makes the world go round
Money makes the world go round

Money is primarily the medium of exchange on an economy; it’s what people trade for goods and services.  Money includes more than just physical currency; it also includes bank deposits since we often make purchases with checks or cards that withdraw from our bank accounts.

Banks create money whenever they extend a loan.  The new loan represents new purchasing power and the deposit that backs the loan is also money.

Real World Examples

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