Creating Money
Money is created when a bank’s gives a loan to and individual or group and the corresponding account is credited with the given amount of money. This may sound strange to some that think of money as gold, silver, or physical currency. The truth is money is created from essentially nothing. In today’s society money is also no longer backed by gold or silver, it is backed by nothing. The government, federal reserve system, commercial banks, and separate borrowers all share different roles in the creation on new money. A checking account for example is money that a bank owes you and currency is money that the Federal Reserve owes you. Ferguson and Bond state “The reality is that hard work and productivity no longer have any direct link at all to creating money. Because of the way money is now created, money can no longer reflect the productivity of any industry or country” (Ferguson & Bond, 2002). When someone looks at creating and destroying money as simply......

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Title: Creating Money
Approximate Word Count: 372
Approximate Pages: 2 (250 words per double-spaced page)

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