PREVIEW
... nk of banks.” A central bank lends money to banks.
Isn’t that obvious?
Money doesn’t just pop out of thin air. Someone who can print money has to actually print it and then lend it out at a fixed interest rate—only then does money exist in the market.
A central bank lends to commercial banks at a certain interest rate, and this is called the base interest rate. And of course... in order to make a profit, the banks lend at higher rates.
This is why even a small rai ...
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