How Banks Turn Trust into Cash

The economics of deposits, loans, and the money multiplier

Photo by Aditya Vyas on Unsplash

You may have heard a variation of this story before:

Alice, an author, deposits a $100 check she received as an advance for her next book in the bank. Brandon Baker takes that $100 out as a loan from the bank to buy flour for his bakery from Mary Miller. Mary takes the money, and pays

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News and ideas worthy of discourse. Fundamentally informative and intelligently analytical.

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Etienne Yuan

Etienne Yuan

Innovation Consultant | Investor | Writer Wannabe | etienne@eyuan.org | @etienneyuan

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