Most people think banks simply store money and lend it out to others… But modern banking is far more powerful than that. In this short video, you’ll learn how banks actually create money through lending, why loans increase the money supply, and how the modern financial system really works. From mortgages and business loans to central bank rules and fractional reserve banking — this is one of the most important concepts in finance explained simply. Watch until the end to understand the hidden system behind modern money. Don’t forget to like, share, and subscribe for more simple finance explanations. #finance #banking #money #economy #investing #financialeducation #business #economics #wealth #moneyexplained #bank #youtubeShorts #financefacts #economyexplained #shorts
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this is a misleading oversimplification
The Loan is Secured by various Assets; Hard Property that can be taken and Sold; Your Future Income and Promise to Pay; And your Signature! The last one, is the financial backing of first Resort, hard Property is Last Resort!