Money Handling Blog – Carnation Enterprises

Money Handling Blog

How Banks Make Money

How Banks Make Money

This article is about how Banks make money. Not how they earn money in any sort of honest way but how they make money out of Thin Air. You see, banks can lend out more money than they actually have.  They can lend out a LOT more money than they actually have. For example, a bank could lend out a million dollars but only have $100,000 in deposits. How does it work? The bank sets up an account for the borrower and writes in their account a balance of million bucks. The borrower  goes out and buys himself a very...

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Security Features in US Currency - Bill Counters Detect Counterfeits

security features of US dollar banknotes

Security Features in US Currency - Bill Counters Detect Counterfeits

Electronic commerce notwithstanding, 40% of consumer transactions are still made with cash [4].The problem of counterfeit bills ending up in your till is as real as ever. 88 million counterfeit USA bills were seized in 2013 [4]. The US Mint has made great efforts in recent years to introduce security features in the circulating currency to help reduce the extent of the problem. By combining this with modern microprocessor-driven bill-counters and sophisticated software, we can provide a reasonable level of protection at a reasonable price to the discerning businessman. This article gives an overview of the anti-fraud innovations built into...

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A Brief History of Gold-Backed and Gold-Lacked US Currencies

history of US currency

A Brief History of Gold-Backed and Gold-Lacked US Currencies

We work hard for our money. We sacrifice our valuable time and effort. The strange thing is that money today grows on trees – in reality it is worth only the paper on which it is printed. Modern money is given value only by the concerted belief and faith of the people. If people stopped believing in the value of the dollar and refused to accept it as payment, even for a moment, the entire financial edifice would collapse. Banks, insurance companies, stock brokers, real estate companies - all would come crashing down. Exactly this happened in the 1780’s. The...

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