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I have been trying to get to the heart of this matter myself. The reason that people say that is because to the best of my knowledge it is borrowed into existence. When the FED wants to expand the monetary base it calls up the treasury and ask to buy a bond. Which is a debt instrument and then "prints" the money up out of thin air to buy the bond. Then that newly created money is lend to regional banks. That newly created money is then lent out at a 10 percent reserve ratio. So the bank gets 1000 from the FED and lends out 900; that same 900 is deposited into another bank and is lent out at a 10 percent reserve ratio. So 810 is loaned out. Can you see that there was only 1000 and it has turned into 1810. So when the bank lends out money it is creating new money. In other words when you go in and take out a loan the money doesn't exist until you sign on the dotted line. All money is created in this way Money is Debt. If someone can refute this claim please do.
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Dr sand borrowed some money to buy furniture for her office she paid 245.00?
Did she? Why is a doctor borrowing money?
Why do banks give interest on deposit?
Banks make money by lending money to people and charging people for borrowing. The amount banks charge is called interest. Banks borrow money from other people and pay them interest on the amount borrowed. Banks charge more interest on the money they lend than they pay one the money they borrow. That is how they make money. When people deposit money with a bank, the bank is literally borrowing money from some people so they can lend it to other people. That is why banks pay interest.
When trading equity loans when do you pay income taxes?
Borrowed money is not income. You may actually get a dedcution for some of the expenses of the new loan, and those for the loan you retire.
Dr Sand borrowed some money to buy new furniture for her office She paid 245.00 simple interest on a 3.5-year loan at 3.5 percent Find the principal?
2000
What is th difference between interest and principal?
If you borrow some money, say 10 Dollars, the person who you borrowed from will want you to pay it back. The 10 Dollars you have to give back are the principal. Chances are, they'le want some extra money along with the principal. In this example we'll say an extra dollar. The extra money you pay back is called interest.
Dr sand borrowed some money to buy furniture for her office she paid 245.00?
Did she? Why is a doctor borrowing money?
Why do some people say that money is borrowed into existence?
When for example a bank takes deposits they almost immediately loan out the vast majority of that money keeping only a small fraction in reserves. On each such cycle the total amount of "money" in the economy could potentially double. When the individual or business borrowing the money spends it eventually it gets redeposited and re-loaned, repeating this cycle. The same thing happens with other methods of investing, each time money is borrowed it multiplies because the investor has it in his account and someone else is using it. After enough cycles the total amount of "money" in the economy is much much larger (e.g. 10 cycles could approach 1000 times the original amount of money).
Why do banks give interest on deposit?
Banks make money by lending money to people and charging people for borrowing. The amount banks charge is called interest. Banks borrow money from other people and pay them interest on the amount borrowed. Banks charge more interest on the money they lend than they pay one the money they borrow. That is how they make money. When people deposit money with a bank, the bank is literally borrowing money from some people so they can lend it to other people. That is why banks pay interest.
What are some sources of working capital and list some examples?
this is when money is used to buy thing then to sell again example say i borrowed money from the bank to then that same money i use to buy things to sell a service or product
What are the sources of working capitals and list some examples?
this is when money is used to buy thing then to sell again example say i borrowed money from the bank to then that same money i use to buy things to sell a service or product
What are Egypt Resource?
Egypt has some financial problems. They have borrowed money from the IMF. Their GDP is based on 11.3% agriculture, 35.8% industry, and 52.9% services according to the CIA World Factbook.
How marijuana came to existence?
lets just say some people are stupid
Can someone take you to court over borrowed money you borrowed money of a friend and got made redundant you have no way of paying this money back until you get a job What could be the outcome of this?
filling court and getting garsnishment and then appeals,you ae srtiil looking at 6 months,if still by then then u might wana set up some type of monthly plan
What people did the Romans borrow their ideas from?
The Romans copied ideas or adopted ideas from the people around them. The Etruscans were the first to influence the Romans, followed by the Greeks some time later.The Romans copied ideas or adopted ideas from the people around them. The Etruscans were the first to influence the Romans, followed by the Greeks some time later.The Romans copied ideas or adopted ideas from the people around them. The Etruscans were the first to influence the Romans, followed by the Greeks some time later.The Romans copied ideas or adopted ideas from the people around them. The Etruscans were the first to influence the Romans, followed by the Greeks some time later.The Romans copied ideas or adopted ideas from the people around them. The Etruscans were the first to influence the Romans, followed by the Greeks some time later.The Romans copied ideas or adopted ideas from the people around them. The Etruscans were the first to influence the Romans, followed by the Greeks some time later.The Romans copied ideas or adopted ideas from the people around them. The Etruscans were the first to influence the Romans, followed by the Greeks some time later.The Romans copied ideas or adopted ideas from the people around them. The Etruscans were the first to influence the Romans, followed by the Greeks some time later.The Romans copied ideas or adopted ideas from the people around them. The Etruscans were the first to influence the Romans, followed by the Greeks some time later.
How did Americans help pay for world war 2?
The US government borrowed money from banks and they sold war bonds. The bonds became collateral against the loans. The loans were paid back and the Americans received their money when they cashed in their bonds years later. Some of the money came from the tax treasury too. I have heard that some donated money. I know people like Henry Fonda and James Stewart raised money before they reported for duty.
What English words have been borrowed from Persian?
Here is a list of some words borrowed, from Persian:AubergineazurebaksheeshbazaarbeigebiryanibrotherbucksheecalabashcaravancashcassockcaviarchessgherkingheegizzardJackalkaftankiosklemonlilacmagicorangeparadisepyjamasandalspinachsugartapestrytiaratambourinetyphoon
Artists who sang the song money?
The O'Jays - "For the Love of Money" Money money money money, money (x6) Some people got to have it Some people really need it
