How Banks Create Money?🏦💡
Let’s break it down in simple words:
1. You deposit 💵 in the bank
2. Bank keeps a part (like 10%) & lends the rest to others 💳
3. That loan becomes another deposit in another bank
4. And the cycle continues 🔁
5. 👉 This is called Fractional Reserve Banking
6. It literally lets banks create money out of thin air 😮
This is why central banks can affect inflation, interest & even currencies 📉📈
And that is how friends banks make money 💵💵..
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