Lesson 4

The banking system

Lesson 4

The Banking System Explained

The next lesson intends to explain the modern banking system in more detail. In principle, there are two different types of banks: deposit banks and investment banks. To differentiate clearly between these two types is quite important. We will see in the following that most of our problems within the banking system today arise from neglecting this fundamental difference. Not to put too fine a point on it: When you deposit money, you don’t want to run a risk. By investing money you are aware of the risk but you take it because of the chance to make a profit. This difference gets levelled out by our banking system today.

More

Bitalo_link.png

You will get an awesome place to trade your
Bitcoin and more. Click for further information!

Choose your topic

and start the journey

Bitalo_link.png