"When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money."
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Original Language: English
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Sources
Federal Reserve Bank of Boston, Putting It Simply (1984); reported in Peter Cook, Federal reserve, fractional reserve and interest-free government credit explained in question and answer form (1991), p. 57. The earliest use of the statement, "[w]hen the Federal Reserve writes a check, it is creating money" appears to come from the United States Congress, House Banking and Currency Committee, Money Facts: 169 Questions and Answers on Money (1964), p. 9.
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Federal Reserve System
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