{"id":29673,"date":"2025-02-23T10:53:16","date_gmt":"2025-02-23T09:53:16","guid":{"rendered":"https:\/\/phoneenglish.es\/blog\/?p=29673"},"modified":"2025-02-26T06:38:30","modified_gmt":"2025-02-26T05:38:30","slug":"how-banks-magically-create-money","status":"publish","type":"post","link":"https:\/\/phoneenglish.es\/blog\/2025\/02\/how-banks-magically-create-money\/","title":{"rendered":"How Banks Magically Create Money"},"content":{"rendered":"\n<p><strong><em>B2 &#8211; Upper Intermediate<\/em><\/strong><\/p>\n\n\n\n<p>Everyone was curious about the origins of money and how it flows through our economy. Did you know that a government facility in Washington, DC, converts paper into cash every hour of the day in order to meet demand? But there&#8217;s a catch: most of the money exists digitally.<\/p>\n\n\n\n<p>See the video below to learn more about how banks magically create money.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"How Banks Magically Create Money\" width=\"580\" height=\"326\" src=\"https:\/\/www.youtube.com\/embed\/RygikaUoRU4?wmode=transparent&amp;rel=0&amp;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<p><strong>Vocabulary Questions:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Explain \u201c<strong>type into existence<\/strong>\u201c.&nbsp;<em>\u201cBefore it ever reached your bank account, it changed hands countless times, passing through people, governments and businesses all after being simply <strong>type into existence<\/strong>.\u201d&nbsp;<\/em>&nbsp;Create a sentence using this term.<\/li>\n\n\n\n<li>What does \u201c<strong>hard to come by<\/strong>\u201d mean?&nbsp;<em>\u201cTo make transactions easier, people started to pay using more commonly used items like cattle, grain and salt. Everyone needed these things, but they were<strong> hard to come by<\/strong> and that&#8217;s what made them valuable.<\/em>\u201d Use this idiom to make your own sentence.<\/li>\n\n\n\n<li>What is the meaning of \u201c<strong>intrinsic value<\/strong>\u201c?\u00a0<em>\u201cThe paper itself has no <strong>intrinsic value<\/strong> but it became as good as gold.<\/em>\u201d Give two (2) synonyms or similar expressions and use \u2018intrinsic value\u2019 in your own sentence.<\/li>\n<\/ol>\n\n\n\n<p><strong>Discussion Questions:<\/strong><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>How does money work and evolve?<\/li>\n\n\n\n<li>When did the entire idea of money started to change?<\/li>\n\n\n\n<li>What&#8217;s the bank role in money processing? <\/li>\n\n\n\n<li>What does &#8220;new money&#8221; mean?<\/li>\n\n\n\n<li>How do banks actually generate revenue?<\/li>\n\n\n\n<li>What are &#8220;bonds,&#8221; and what role do they play in the banking system?<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>B2 &#8211; Upper Intermediate Everyone was curious about the origins of money and how it flows through our economy. Did you know that a government facility in Washington, DC, converts paper into cash every hour of the day in order to meet demand? But there&#8217;s a catch: most of the money exists digitally. See the [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[291,39,292,290,14],"class_list":["post-29673","post","type-post","status-publish","format-standard","hentry","category-homework","tag-b2-upper-intermediate","tag-finance","tag-first-certificate-fce","tag-listening","tag-video"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v16.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How Banks Magically Create Money | phone english blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/phoneenglish.es\/blog\/2025\/02\/how-banks-magically-create-money\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Banks Magically Create Money | phone english blog\" \/>\n<meta property=\"og:description\" content=\"B2 &#8211; Upper Intermediate Everyone was curious about the origins of money and how it flows through our economy. Did you know that a government facility in Washington, DC, converts paper into cash every hour of the day in order to meet demand? But there&#8217;s a catch: most of the money exists digitally. See the [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/phoneenglish.es\/blog\/2025\/02\/how-banks-magically-create-money\/\" \/>\n<meta property=\"og:site_name\" content=\"phone english blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/facebook.com\/phoneenglish.es\" \/>\n<meta property=\"article:published_time\" content=\"2025-02-23T09:53:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-02-26T05:38:30+00:00\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@phoneenglishes\" \/>\n<meta name=\"twitter:site\" content=\"@phoneenglishes\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\">\n\t<meta name=\"twitter:data1\" content=\"1 minute\">\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Organization\",\"@id\":\"https:\/\/phoneenglish.es\/blog\/#organization\",\"name\":\"PHONE ENGLISH\",\"url\":\"https:\/\/phoneenglish.es\/blog\/\",\"sameAs\":[\"https:\/\/facebook.com\/phoneenglish.es\",\"https:\/\/www.linkedin.com\/company\/phoneenglish\",\"https:\/\/twitter.com\/phoneenglishes\"],\"logo\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/phoneenglish.es\/blog\/#logo\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/phoneenglish.es\/blog\/wp-content\/uploads\/2020\/05\/phone-english1.png\",\"contentUrl\":\"https:\/\/phoneenglish.es\/blog\/wp-content\/uploads\/2020\/05\/phone-english1.png\",\"width\":200,\"height\":124,\"caption\":\"PHONE ENGLISH\"},\"image\":{\"@id\":\"https:\/\/phoneenglish.es\/blog\/#logo\"}},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/phoneenglish.es\/blog\/#website\",\"url\":\"https:\/\/phoneenglish.es\/blog\/\",\"name\":\"phone english blog\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\/\/phoneenglish.es\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":\"https:\/\/phoneenglish.es\/blog\/?s={search_term_string}\",\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/phoneenglish.es\/blog\/2025\/02\/how-banks-magically-create-money\/#webpage\",\"url\":\"https:\/\/phoneenglish.es\/blog\/2025\/02\/how-banks-magically-create-money\/\",\"name\":\"How Banks Magically Create Money | phone english blog\",\"isPartOf\":{\"@id\":\"https:\/\/phoneenglish.es\/blog\/#website\"},\"datePublished\":\"2025-02-23T09:53:16+00:00\",\"dateModified\":\"2025-02-26T05:38:30+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/phoneenglish.es\/blog\/2025\/02\/how-banks-magically-create-money\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/phoneenglish.es\/blog\/2025\/02\/how-banks-magically-create-money\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/phoneenglish.es\/blog\/2025\/02\/how-banks-magically-create-money\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"item\":{\"@type\":\"WebPage\",\"@id\":\"https:\/\/phoneenglish.es\/blog\/\",\"url\":\"https:\/\/phoneenglish.es\/blog\/\",\"name\":\"Blog\"}},{\"@type\":\"ListItem\",\"position\":2,\"item\":{\"@id\":\"https:\/\/phoneenglish.es\/blog\/2025\/02\/how-banks-magically-create-money\/#webpage\"}}]},{\"@type\":\"Article\",\"@id\":\"https:\/\/phoneenglish.es\/blog\/2025\/02\/how-banks-magically-create-money\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/phoneenglish.es\/blog\/2025\/02\/how-banks-magically-create-money\/#webpage\"},\"author\":{\"@id\":\"https:\/\/phoneenglish.es\/blog\/#\/schema\/person\/e5f3de4dca151e20221f78f99bf1cfa6\"},\"headline\":\"How Banks Magically Create Money\",\"datePublished\":\"2025-02-23T09:53:16+00:00\",\"dateModified\":\"2025-02-26T05:38:30+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/phoneenglish.es\/blog\/2025\/02\/how-banks-magically-create-money\/#webpage\"},\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/phoneenglish.es\/blog\/#organization\"},\"keywords\":[\"B2 - Upper intermediate\",\"finance\",\"First Certificate FCE\",\"Listening\",\"video\"],\"articleSection\":[\"Homework\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/phoneenglish.es\/blog\/2025\/02\/how-banks-magically-create-money\/#respond\"]}]},{\"@type\":\"Person\",\"@id\":\"https:\/\/phoneenglish.es\/blog\/#\/schema\/person\/e5f3de4dca151e20221f78f99bf1cfa6\",\"name\":\"beth\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","_links":{"self":[{"href":"https:\/\/phoneenglish.es\/blog\/wp-json\/wp\/v2\/posts\/29673","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/phoneenglish.es\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phoneenglish.es\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phoneenglish.es\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/phoneenglish.es\/blog\/wp-json\/wp\/v2\/comments?post=29673"}],"version-history":[{"count":3,"href":"https:\/\/phoneenglish.es\/blog\/wp-json\/wp\/v2\/posts\/29673\/revisions"}],"predecessor-version":[{"id":29763,"href":"https:\/\/phoneenglish.es\/blog\/wp-json\/wp\/v2\/posts\/29673\/revisions\/29763"}],"wp:attachment":[{"href":"https:\/\/phoneenglish.es\/blog\/wp-json\/wp\/v2\/media?parent=29673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phoneenglish.es\/blog\/wp-json\/wp\/v2\/categories?post=29673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phoneenglish.es\/blog\/wp-json\/wp\/v2\/tags?post=29673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}