Robert B. Anderson - When a bank makes a loan, it simply adds to the borrower's deposit account

When a bank makes a loan, it simply adds to the borrower's deposit account by the amount of the loan. It does not take this money from anyone else's deposit; it was not previously paid in to the bank by anyone. It's new money, created by the bank for the use of the borrower.

- Robert B. Anderson

topic: Use, Doe, Add, Borrowers