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Illya Gerasymchuk
Financial & Software Engineer

when a bank buys an asset from a non-bank it creates broad money

User Illya Gerasymchuk -

2025-08-22 12:43

when a bank buys an asset from a non-bank it creates broad money

if a commercial bank buys a US Treasury bill from you, it will pay you by create a new deposit into your account

so effectively the bank pays you by creating new digital currency and crediting it into your account

when a bank buys an asset from a non-bank it creates broad money