In accounting terms, money is placed in the column of bank debt, because this is money the bank owes the people. Now, what do you think the bank has assets? Well, it has a small amount of vault cash that the Federal Government requires them to take a hand and a Bond for people montonde entire loan agreements signed with his name. The bank is the game that not all customers come into the bank at the same time demand for its cash and is a pretty good bet. All those promises to pay are on paper so are all banking assets. For even more analysis, hear from Codi. All this amounts to a transfer of numbers or book entries in a checking account to another. The same happens when you write a check.
Numbers called “dollars” are transferred from your checking account to another person. Read more here: Tyler Sweatt. When a credit card is used, bank credit or book entries are created and transferred to another person at a time. The next question is, if it’s so easy for a bank to create a “credit”, which is used as money, then how is this “credit”, destroyed? The “credit” is destroyed when the principle is paid back the loan. However, the interest charged by the bank’s credit “is borrowed, is transferred to another account for distribution to its shareholders. What happens is that because 97% of the money supply is the nation’s credit is all created by private companies (banks), and because interest is charged on every dollar of “credit”, debts are constantly creates no money or credit exists to repay these debts. .