Let's learn something here👇👇👇
Do you know what fractional reserve banking is?
When banks lend, most of the money isn’t physical cash, it’s a number in your account. That’s the ‘created’ money.
Only a small amount is held as real cash because CBK requires them to keep reserves.
So when you borrow 50K, the bank doesn’t pull out 50K in cash from a vault, they record it in your account, and you owe it back with interest. That’s how lending ‘creates’ money, safely and under rules from the CBK.
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