Kevin asked in Social ScienceEconomics · 8 years ago

can Banks create an unlimited amount of money?

3 Answers

  • 8 years ago
    Favorite Answer

    Yes , with reserve ratio =0.

    But that is the last resort... after 0% interest rates and 0% corporate taxes.

  • 8 years ago

    Could they, yes. Is it wise to, god no.

  • Fred
    Lv 7
    8 years ago

    Yes. Although not just any bank may do so. Find out what "fractional reserve banking" is. Also investigate "fiat" or "ledger entry" currency. Federal Reserve notes are "printing press" money and may be devalued at will by printing more. The whole thing is a scam and nothing will improve until we audit the Fed and return control of the nations currency to Congress(who can be voted out of office as apposed to the Federal Reserve Board of Governors who are insulated from removal by the vote).

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