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When a bank buys an asset from a non-bank, it creates deposits

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1 points by iluxonchik 3 months ago · 1 comment

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iluxonchikOP 3 months ago

When a bank buys an asset from a non-bank it creates broad money

If a commercial bank buys an asset from you (I'm assuming you're not a credit instituion), it will pay you by create a new deposit into your account

So effectively the bank pays you by creating new digital currency and crediting it into your account

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