• Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
Representational Monetary Identity

Representational Monetary Identity

Paperback

Business General

ISBN10: 1105188671
ISBN13: 9781105188671
Publisher: Lulu Pr
Published: Oct 31 2011
Pages: 60
Weight: 0.22
Height: 0.14 Width: 6.00 Depth: 9.00
Language: English
Let us analyze what happens in commercial banking. First, we have a deposit. Then, we have a loan of up to a fraction (of 90%%) of this deposit. Finally, the borrower can deposit the borrowed money into another bank account, in the same bank or not. Suddenly, the trillion dollar question emerges: is the borrowed money in these two bank accounts... the same? On the one hand, the answer is yes: all borrowed money came from the original deposit---so it is that same original money. On the other hand, the answer is no: all money deposited into the borrower's account possibly stays in the original depositor's account---so it is not that same original money. How can that be? (Digital version: http: //omniequivalence.com/representational-monetary-identity/)

Also in

Business General