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Results tagged with interest
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user 43743
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Do banks pay interest on the money they create?
They pay the depositor interest on the \$10 and earn interest on the $100 loan.
It looks to me like they don't pay any interest on the money they created, is this right? … Say the loan interest rate is 7% and the deposit interest rate is 4%, they earn \$7 and pay out \$4 in interest. …
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