can Banks create an unlimited amount of money?
- AleconomixtLv 78 years agoFavorite Answer
Yes , with reserve ratio =0.
But that is the last resort... after 0% interest rates and 0% corporate taxes.
- Snrpatel10Lv 68 years ago
Could they, yes. Is it wise to, god no.
- FredLv 78 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).