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The Wall Street Journal ran a great article comparing cryptocurrency sizes. The article compared the asset classes by relative market capitalizations if you added everything up. Source: WSJ Source: WSJ

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Each bank has a Chart of Accounts including accounts that are designated Assets, accounts that are designated Liabilities, and the difference between Assets and Liabilities is Owner's Equity or just Equity. This four page pdf paper shows a simplified balance sheet and income statement for a fictional bank: https://www.richmondfed.org/~/media/richmondfedorg/...

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Banks create real money simply by approving a loan. The intermediary "theory" is a misconception, at least regarding money creation as it works today as you point out yourself. Banks don’t lend out customers deposits. On the contrary: By approving a loan, a bank, say Bank A, creates a deposit of the same amount in the customer’s account. For all ...

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If you consider bank balances to be "money", then the fractional reserve theory makes sense. If you consider bank balances to be "not money", then the financial intermediation theory makes sense. They are two equivalent ways of looking at the same system from different perspectives. If bank deposits are "money", then of course, ...

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The money is """real""" in the sense that it's backed by "real money" even though it's not "real money". Think about this: You go into a bank and ask for a \$1,000 loan. They say yes. They update their database - now their loans are \$1,000 more and your balance is \\$1,000 more. So far, no "real money&...

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where does it actually come from? The money comes from the reserves (note not in 1:1 ratio necessarily - the ratio of reserves to money is typically very small actually) provided by central bank (or possibly from other private bank that happens to have excess reserves/capital), and the reserves themselves are created out of nothing by government decree by ...

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I can only offer you an explanation of what is four types of money in the United States context, in which my hope is you can understand what reserves are and how they work in the United States context at least. Not knowing how your friend defines "currency" as opposed to money. All I can offer is that there are four different types of money issued ...

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Not knowing how your friend defines "currency" as opposed to money. All I can offer is that there are four different types of money issued in the United States. Coins - physical money created and issued by the U.S. Treasury and sold at face value to the Federal Reserve, which books coins as an asset on its balance sheet. Unlike the other three ...

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