💵 Unlocking the Power of Excess Reserves: Commercial Banks and the Central Bank 💼

Explore the intricate world of commercial banks as they lend excess reserves to each other at interest rates and earn additional income by depositing those reserves at the central bank. #CommercialBanks #InterbankLending #InterestRates #ExcessReserves #CentralBank #financialsystem

Original Source: The Economist | How does raising interest rates control inflation?