by enginerd03
- banks have a lot of treasuries
- banks do not have a lot of cash
- businesses need cash to operate
- banks cant give them cash, because banks have a lot of treasuries
- fed buys treasuries from banks, giving them cash.
- banks have cash
- banks can give cash to businesses in the form of loans.
(its obviously more complex, but thats the watered down version of it)
Views: