Cryptocurrency Q&A
Who creates the world's money?
Who creates the world's money?
SamuraiWarrior
Sat Sep 14 2024
|
7 answers
1221
It's a question that has puzzled economists and laymen alike for centuries: who, exactly, creates the world's money? Is it governments, who print paper currencies and mint coins? Or is it central banks, who control the money supply through various monetary policies? Perhaps it's the private sector, through the issuance of credit and loans? Or could it be something more abstract, like the collective faith and trust of society in the value of money? Whatever the answer may be, it's clear that the creation of money is a complex and multifaceted process, with many different actors and factors at play. So, who really creates the world's money? Let's dive deeper into the question and explore the various perspectives and arguments on this fascinating topic.
Previous
What is the hardest university to get into in Australia?
Next
Why is Wall Street declining?
7 answers
CryptoTitaness
Mon Sep 16 2024
Money creation, also known as money issuance, serves as the fundamental process that augments the monetary supply within a nation or an economic/monetary zone. This pivotal mechanism ensures the continuous Flow of funds necessary for economic transactions and growth.
Was this helpful?
105
25
HanRiverVision
Mon Sep 16 2024
In contemporary economies, the responsibility of money creation is shared between two key entities: central banks and commercial banks. Each plays a distinct yet complementary role in managing the money supply.
Was this helpful?
98
87
Caterina
Sun Sep 15 2024
BTCC's services encompass spot trading, enabling users to buy and sell cryptocurrencies at market prices. Additionally, the platform provides access to futures trading, allowing investors to speculate on the future price movements of various digital assets.
Was this helpful?
374
33
Lucia
Sun Sep 15 2024
Central banks, such as the Federal Reserve in the United States, are the primary authorities tasked with regulating the monetary base. They achieve this through various monetary policy tools, including interest rate adjustments and open market operations.
Was this helpful?
99
99
Sofia
Sun Sep 15 2024
By contrast, commercial banks participate in the money creation process through the practice of fractional reserve banking. This allows them to lend out a portion of the deposits they receive, effectively expanding the overall money supply.
Was this helpful?
146
50
Load 5 more related questions
