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How money gets destroyed (new video)
Remember how new money is created when a bank makes a loan? Well, when someone repays the loan, the opposite process happens, and money is actually destroyed.
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Remember how new money is created when a bank makes a loan? Well, when someone repays the loan, the opposite process happens, and money is actually destroyed. It effectively disappears from the economy entirely.
Watch the 6th part of our Banking 101 Video Course now:
[youtube height=”390″ width=”640″]http://www.youtube.com/watch?v=BB4BKLvH3l8[/youtube]