The mortgage would bring about a deposit during the bank issuing the mortgage.

The mortgage would bring about a deposit during the bank issuing the mortgage.

Plus the needed reserves for the deposit stay static in their bank checking account (reserves acct) during the Fed.

In the event that debtor chooses to move the deposit to a different bank (purchasing a home, as an example), the reserves travel utilizing the deposit to bank B. Continue reading “The mortgage would bring about a deposit during the bank issuing the mortgage.”