What is a bank? A bank is a financial institution authorized to provide service options for customers who want to save, borrow or accrue more money. Banks typically accept deposits from, and offer ...

Interest is one of the ways lenders make their money, and it’s what makes it worth it for them to give out loans. If you’re borrowing money, interest is the cost the bank charges you for the service.

The money multiplier theory is one of the biggest myths in economics. Many textbooks claim that banks lend out a fraction of deposits, multiplying money through fractional reserve banking. But modern ...

A client of mine, John, called last month asking what he should do with some extra cash sitting at a local bank. I asked what “extra” meant and what he wanted to accomplish. He paused for a moment and ...