So, How Does Banking Work, Anyway?

As a business, you are doubtless interested in the mechanics of money. At least you should be. It is important to understand how money flows through the system, as well as how banks make their money and make it available for use in corporate finance. If you are interested in how banking works, at a basic level, and how it affects society, this is a great video to watch.

The video also makes an interesting point about value and perception. The video points out that gold doesn’t actually have any more value, in real terms, than bits of paper. What makes gold seem more valuable is that we, as a society, have agreed that it must be. And that is the basis for any business exchange: Perception of value is paramount, and it is what our entire financial system is based on. You set a price for your goods and services, and, if customers agree that is the value of what you offer, they pay it.