How can banks just print money out of nowhere and buy whatever they want?

Best Answer:

Zervaley: A bank does not print money.

The federal government prints money, but they generally do this to replace old worn out currency with new currency. If they simply printed money without replacing it, there would be too much money in the economy and prices would soar.

Other answer:

SumDude:
Only the federal government (USA) can "print" ** money, and buy whatever they want. ** "Printing money" is very different from producing green pictures of dead presidents.
tro:
banks don't print money, only the mint prints money
Flatulent Tea Bag Face:
Banks make money from interest, while there is money in someone's account that generates interest and they don't give it all to the customer. Also, every time a cheque has to spend a few days "clearing" it's really unnecessary hoarding so they can make interest off them, they could clear them straight away but they don't. Other ways are charging customers for using overdrafts. If there is millions of pounds or dollars, whatever currency, in millions of bank accounts then that is mind boggling interest every day, there are not many banks so the ones that exist that you could count on two hands have millions of customers each. They also make it very difficult for any new banks to start up so they don't lose customers easily.
Donald B:
Banks do not print money. The US department of the Treasury prints it
Eva:
Banks don't print money.
Ghost Of Christmas Past:
They can't. However, the whole subject can be very complicated. If you're really interested, start here https://www.boundless.com/business/textb…
Jay P:
I don't know about the country you live in but where I live, banks do not print money. The mint ( a government agency ) does.

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