Do the Central Federal Reserve Banks create money
This post was written by admin on July 13, 2008
Posted Under: Uncategorized
Posted Under: Uncategorized
Yes, they likewise make bookkeeping entries with which to purchase government bonds from the member banks. When they “buy” paper from the local banks, they debit Federal Reserve Credit, and credit Deposits. In this case, the amounts are added to the accounts belonging to one of the member banks. (Re-serves of the member banks).




