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The Unseen method of Banks. How Banks actually “Create Money “.
Banks create money more than you and I thought.
Although banks have many methods to earn money, many people may already know about the one I’m about to explain.
You might know that when a person deposits money in a bank, the bank gives them a return of around 3–4% annually as interest.
Then the bank lends that same money to someone else in the form of a loan and charges 12–15% interest on it. Out of that, they give 3–4% to the person who deposited the money, and the rest is the bank's profit.
Most people are already aware of this.
But at some point, you might have also wondered how private banks or even government banks open small branches in apartments in different cities.
Inside, you'll find AC systems and well-designed offices. Even the bank employees working there receive a decent salary.
So doesn't it ever surprise you how they manage to live so luxuriously, renting such small apartments and enjoying the air conditioning?
But you’ll be shocked to know that banks actually create money.
No, I’m not talking about printing money….I mean creating money without much effort.
