Banking – where does the money come from?

On December 8, 2011, in Uncategorized, by Newsrooms

Imagine the very first bank. It’s printed only £100, and it lends that to customers, all of it. At an agreed interest rate of 10% So it expects to get back £110. But it’s only printed £100. That’s all the money in the world Where does the other £10 come from for the customer to pay the interest?

 

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