How do banks work?

How do banks REALLY work?

Banks take in money as deposits, give that money out as loans, and bam, that's it, that's how they work... right? Not quite...

There's a really simple way of describing how banks work. They take your money, lend it to other people and charge more interest than they give back to you. And that's how they make their money.

The thing is, that theory is kind of wrong.


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