Unlocking The Secrets Fractional Reserve Banking: A Simple Explanation

This is How Banks use your money. They use short-term deposits to make longer-term loans. They make money from what they call the spread, or the difference between the interest rate they pay for your deposits and the interest rate they receive on the loans they make.

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DISCLAIMER: These videos are for educational purposes only. Nothing in this video should be construed as financial advice or a recommendation to buy or sell any sort of security or investment. Consult with a professional financial advisor before making any financial decisions.

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