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September 3rd, 2018, 06:17 AM   #1
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From where Bank get money

Hello
From where Bank get money and store them in the bank?

Last edited by skipjack; September 3rd, 2018 at 02:03 PM.
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September 3rd, 2018, 06:38 AM   #2
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The money store.
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September 3rd, 2018, 08:06 AM   #3
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The printer of the money.
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September 3rd, 2018, 10:03 AM   #4
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Quote:
Originally Posted by EBTERTTBT View Post
Hello
From where Bank get money and store them in there bank
They take it from the people. A bank is a Business and it can do the following things:

1) Keep your money safe.
2) Transfer transactions (Moving money from one place to another safely).
3) Payments (Pay someone safely even if they are far away).

Of course when someone is using these services, a person like you for example, is actually paying the bank for these services even if you can't notice it.
Also the government is paying them through taxes.

Also the bank owners have something that they call "shares", which means that when they created their bank they putted some of their money into the bank so the bank will be able to start working. They also keep increasing these shares which means that while they make more money through this business they also increase their shares, giving them more control power over the bank business.
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September 3rd, 2018, 11:22 AM   #5
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Originally Posted by EBTERTTBT View Post
From where Bank get money and store them in there bank
1) Deposits (peanuts)

2) They lend money they don't have.
You take out a mortgage for 200000 and the bank makes a ledger entry of 200000 in your checking account, on which you pay interest.
Or, what amounts to the same thing, let's say you want to buy GM. You go to the bank and say you want to borrow five-hundred-billion dollars to buy GM.
Bank: What's your collateral?
You: GM

3) Borrow from the PRIVATE Federal Resrve. Where does the Federal Reserve get the money?
The government needs, say, 1000. They give the Fed an IOU for 1000 (treasury bill) and the Fed creates a ledger entry of 1000 in the government's account. The Fed then either sells the securities (China) or uses them as collateral to lend money to banks. The government writes a check for 1000 and spends it into the economy. This is known as monetizing the debt. Taxes are really academic. Is it free money? No. The price you pay is inflation and interest. Eventually the GDP goes entirely into paying interest on the national debt.

Fascinating topic.

If every country in the world is in massive debt, whom do they owe the money to?

We don't give money to third world countries, we lend it to them. What's the collateral? The country. But you lent us money you printed, why should we pay you back?: Our army is bigger than your army.

But the army isn't even necessary.
Do you have dissidents, unemployed, resentful minorities, border disputes, angry neighbors, trade with other countries...?
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Last edited by skipjack; September 3rd, 2018 at 02:15 PM.
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September 3rd, 2018, 02:13 PM   #6
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Not all of that would apply to Indian banks. Banks charge fees.

Also, most banks use fractional-reserve banking.
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September 3rd, 2018, 03:50 PM   #7
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Originally Posted by skipjack View Post
Also, most banks use fractional-reserve banking.
...except the Dodge City Bank where Clint Eastwood did business
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September 3rd, 2018, 06:39 PM   #8
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Originally Posted by zylo View Post
If every country in the world is in massive debt, whom do they owe the money to?
The international monetary system is a Road Runner cartoon. After Wile E. Coyote runs off a cliff, he stays up in the air ... till he looks down.

Or as John Maynard Keynes, a guy who knew money, once said:

For it is, so to speak, a game of Snap, of Old Maid, of Musical Chairs — a pastime in which he is victor who says Snap neither too soon nor too late, who passed the Old Maid to his neighbour before the game is over, who secures a chair for himself when the music stops. These games can be played with zest and enjoyment, though all the players know that it is the Old Maid which is circulating, or that when the music stops some of the players will find themselves unseated.

Within our lifetimes we're likely to see the end of the debt bubble. It will not be pretty and nobody will be spared. Till then ... party on!
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September 3rd, 2018, 11:24 PM   #9
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Quote:
The printer of the money.
Does the money printer is in India for Indian currency

Quote:
1) Keep your money safe.
2) Transfer transactions (Moving money from one place to another safely).
3) Payments (Pay someone safely even if they are far away).
Hello
How does bank keep money safe can't we do this
How does Bank do transaction
how does bank do payments from far away
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September 4th, 2018, 05:20 AM   #10
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Get a job at a bank...you'll find out.
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