Financial and insurance activities are said to be covered by the umbrella term "finance & insurance." The Wikipedia entry says that finance & insurance refers to "activities that deal with the management of money, including personal banking (savings, checking accounts, etc), credit cards, consumer loans, corporate finance, and other commercial services." Hence, the term "bank" is used to describe both savings banks and borrowing banks. Banks are where you keep your money or credit, then lend it out at a higher rate of interest as a loan. This method of fractional reserve banking is referred to as "reserve-lite" banking.
Who is in charge of these banks? The answer, in most countries, is the central bank. A central bank is a banking monopoly that also acts as a regulator for the country's financial institutions and frequently prints/creates new currency.
When you go to the bank to get a loan or store cash, you're essentially selling your own money for pieces of paper with dead white males on them. This leads to an intriguing question: we live in the United States, yet "money" is not true money. It's simply pieces of paper that we've decided to exchange as if they have worth and have been assigned value by legislation (US Code 31).
What is the origin of the centralized banking system? To comprehend this issue, one must first understand what occurred during the so-called "Industrial Revolution." People began steamrolling capital FAST during the industrial revolution when they quit doing business as usual. Central banking was formed as a result of these new quick-paced industrialized firms requiring financial institutions that would function faster than what was available at the time.
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