THE MONEY MOVERS: What Banks Do, And Why by Don Colen

THE MONEY MOVERS: What Banks Do, And Why

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The latest in a recent run of undistinguished juveniles on the mechanics of money, this sets down very simply, for whatever fifth grader cares to know, how checks are cleared between individual accounts and banks and--introducing interest via a hypothetical conversation between Italian trader Marco and Chinese Wang, haggling in old Constantinople--how banks lend out other people's money, paying them for its use, or ""buy"" money with federal funds and certificates of deposit. Switching to the borrower's frame of reference, Colen outlines the steps ""your parents"" go through to borrow $300 for a new refrigerator or $80 (""to use an easy figure"") for a house, noting that ""businesses borrow money too"" and even the government borrows by ""selling"" bonds. He ends with a view of a more convenient electronic future--a console approach in line with the limited scope throughout.

Pub Date: June 30th, 1978
Publisher: McKay