Where does the Fed get the money that it loans to banks through the discount window?

Question

Does the Fed just print the money? Also, when it was infusing money into the system by buying some kind of securities or bonds, where was that money coming from? Can someone explain the recent actions of the Fed. Thank you!

Answer 1

The Fed just creates the money (doesn't necessarily "print", as the amount of cash (bills & coins) in circulation is a different question). See this article in Wikipedia for a detailed example of how new money is created in the U.S.: http://en.wikipedia.org/wiki/Money_creation#An_example_of_the_creation_of_new_money_in_the_USA

Answer 2

Are you constructive you have your question staggering? Banks are agencies and we sperate corporation and governement. in reality the only government enterprise it somewhat is tied to banks is the FDIC and that they only are there to guard the individuals who provide their money to the banks. Banks make earnings lots of approaches even with the shown fact that. maximum banks play the inventory industry (making an investment). banks make investments contained obtainable usually with great sums of money in small danger shares. It will pay off over the years. Banks additionally may additionally positioned money into residences and commercial residences. Banks additionally can provide to charity for tax staggering offs. Banks will notably lots do something no rely if it is low danger and could pay off. maximum people who initiate new banks even with the shown fact which will initiate off with on the brink of a internet nicely worth of around a million. they gets backers to furnish a intial investment and as quickly as the economic business enterprise is able to get inventory those human beings will then substitute into the main significant share holders. in reality a economic business enterprise is merely yet another corporation.

Answer 3

1) Japan, Germany, China, England, France, Italy, Canada, Spain, Brazil, Russia, South Korea, India and Mexico.
2) No.
3) See Answer 1
4) The Economy is growing very slowly and it could stop in a few months. Inflation is growing very fast and it could be higher than Mexico's and Canada's in a few months. If the Dow Jones industrial Average goes from 14,000 to 12,000 then everybody will sell and the stock market would crash.

If you need a more detailed answer then you can email me.

Answer 4

The U.S. Bureau of Engraving prints money. Come to Washington, DC, and you can see them do it.

But I think you're talking bigger picture. The government gets money from all sorts of revenues, for example from taxes.

But it also borrows money. You lend the government money when you buy a savings bond; the government promises to pay you back when the bond matures. The government also issues bonds to (borrows from) foreign countries to make ends meet.

Answer 5

i had to laugh about the stuffing envelops maybe that is why the army has so few troops to send over seas because they are hidden away on some base stuffing envelops -- beside taxes the govt borrows money from me and you -- if you look at a saving bond is is issued by the govt and is part of the govt debt!!!

Answer 6

Maybe the Fed is making all those big bucks taking surveys online or stuffing envelopes....

The Federal government has only one source of money -- TAXES. They just shuffle from one pot to the other.

Answer 7

from you