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Nigerian afro pop star Ogolu Damini has recently asked a rhetorical question to a fellow singer who threatened a young man on social media.

Dremo who is a singer and a song writer under the platform of Davido Music Worldwide (DMW) has claimed that the young man he threatened has spoken ill of him and other celebrities and has been speaking bad about celebrities for a while now. He made a tweet asking the young to tender an apology in an apology video or he will do just as he planned.

Burna Boy on saw the tweet and made a counter tweet saying "Dremo to dey threaten perrson",(In Nigerian Pigin).

Dremo threatened he was going to locate the young and teach him a lesson. Aside the message the young man who is known as Reo_Flamez also made a video to apolgize in order to settle everything. He us some screenshots of thier messages.

How do Banks make their money

1 The previous section looks at how banks actually operate in the real world. The following section looks at some of the common misconceptions surrounding banks, including the favourite of economics textbook writers everywhere, the money multiplier model.

2 PERCEPTION OF BANKING NUMBER 1: THE [SHORTCUT]SAFE[/SHORTCUT] DEPOSIT BOX

Most of us had a piggy bank when we were kids. The idea is really simple: keep putting small amounts of money into your piggy bank, and when a rainy day comes along, the money will still be sat there waiting for you. For a lot of people, this idea of keeping your money safe sticks with them into adult life. A poll done by ICM on behalf the Cobden Centre found that a third of the UK public still believe that this is how banks work.

However, your bank account isnt a safe deposit box. The bank doesnt take your money, carry it down to the vault and put it in a box with your name written on the front. And it doesnt store it in any digital equivalent of a safe deposit box either. What actually happens is that when you put money into a bank, that money becomes the property of the bank. Because it becomes their property, the bank can use it for effectively anything it likes.

But what are those numbers that appear in your account? Is that not money? In a legal sense, no. Those numbers in your account are just a record that the bank needs to repay you at some point in the future.  In accounting terms, this is known as a liability of the bank. So the balance of your bank account doesnt actually represent the money that the bank is holding on your behalf. It just shows that they have a legal obligation or liability to repay you the money at some point in the future.

3 PERCEPTION OF BANKING NUMBER 2: THE [SHORTCUT]MIDDLE[/SHORTCUT]-MAN.

The other two thirds of the UK public have a slightly better understanding of how banks really work.

They believe that banks take money from savers and lend it to borrowers i.e. banks borrow money from people who want to save it, such as pensioners and wealthy individuals, and they then use that money to lend it to people who need to borrow, such as young families that want to buy houses or small businesses that want to invest and grow. The banks make their money by charging the borrowers slightly more in interest than they pay to the savers. The difference between the interest rates known as the spread makes up their profit.

In this model, banks just provide a service by getting money from people who dont need it at the time, to people who do. The Cobden Centre poll mentioned earlier asked people if they were worried about this process: around 61% of people said they didnt mind so long as they get some interest and the bank isnt too reckless.Uu

The implications of this theory are that if theres no-one who wants to save, then no-one will be able to borrow. That means its good for the country if we save, because it will provide more money for businesses to grow, which will lead to more jobs and a healthier economy. This is the way that a lot of economists think as well. In fact, a lot of economics courses at universities still teach that the amount of investment in the economy depends on how much we have in savings. But this is completely wrong, as well see shortly.

4 PERCEPTION OF BANKING NUMBER 3: THE MONEY [SHORTCUT]MULTIPLIER[/SHORTCUT]

Most economics and finance students have a slightly better understanding of banking. They get taught about something called the money multiplier. The money multiplier story says that banks actually create much of the money in the economy.

Heres how the story goes: A man walks into a bank and deposits his salary of 1000 in cash. Now the bank knows that, on average, the customer wont need the whole of his 1000 returned all at once. Hes probably going to spend a little bit of his salary each day over the course of the month. So the bank assumes that much of the money deposited is idle or spare and wont be needed on any particular day.

It keeps back a small reserve of say 10% of the money deposited with it (in this case 100), and lends out the other 900 to somebody who needs a loan. So the borrower takes this 900 and spends it at a local car dealer. The car dealer doesnt want to keep that much cash in its office, so it takes the money back to another bank.

Now the bank again realises that it can use the bulk of the money to make another loan. It keeps back 10% 90 and lend out the other 810 to make another loan. Whoever borrows the 810 spends it, and it comes back to one of the banks again. Whichever bank receives it then keeps back 10% i.e. 81, and makes a new loan of 729.

This process of re-lending continues, with the same money being lent over and over again, but with 10% of the money being put in the reserve every time. Note that every one of the customers who paid money into the bank still thinks that their money is there, in the bank. The numbers on their bank statement confirm that the money is still there. Even though there is still only 1000 in cash flowing around, the sum total of everyones bank account balances has been increasing, and so has the total amount of debt.

Supposedly this process continues, until only a penny is being relent. By now, the sum total of all bank accounts adds up to about 10,000. So the multiplier model that is still taught in many universities implies that this repeated process of a bank taking money from a customer, putting a little bit into a reserve, and then lending out the rest can create money out of nothing, because the same money is double-counted every time is it relent.

You can imagine this model as a pyramid. The cash is the base of the pyramid, and depending on the reserve ratio the banks multiply up the total amount of money by re-lending it over and over again.  More advanced treatments include the concept of central bank reserves as well as cash, however the basic message is the same.

5[SHORTCUT]PROBLEMS[/SHORTCUT] WITH THE MONEY MULTIPLIER MODEL

The money multiplier model of banking has several implications:

Firstly, this  model implies that banks have to wait until someone puts money into a bank before they can start making loans. This implies that banks just react passively to what customers do, and that they wait for people with savings to come along before they start lending.

Secondly, it implies that the central bank has ultimate control over the total amount of money in the economy. They can control the amount of money by changing either the reserve ratio or the amount of base money cash at the bottom of the pyramid.

For example, if the Bank of England sets a legal reserve ratio and this reserve ratio is 10%, then the total money supply can grow to 10 times the amount of cash in the economy. If the Bank of England then increases the reserve ratio to 20%, then the money supply can only grow to 5 times the amount of cash in the economy. If the reserve ratio was dropped to 5%, then the money supply would grow to 20 times the amount of cash in the economy.

Alternatively, the Bank of England could change how much cash there was in the economy in the first place. If it printed another 1000 and put that into the economy, and the reserve ratio is still 10%, then the theory says that the money supply will increase by a total of 10,000, after the banks have gone through the process of repeatedly re-lending that money. This process is described as altering the amount of base money in the economy.

Thirdly, it implies the money supply can never get out of control, unless the central bank wants it to.

Unfortunately, the money multiplier model of banking is completely wrong. Professor Charles Goodhart of the London School of Economics and an advisor to the Bank of England for over 30 years described this model (in 1984) as such an incomplete way of describing the process of the determination of the stock of money that it amounts to mis-instruction. Why is this?

Firstly, the underlying concept of the money multiplier is that in order to make loans banks first require people to deposit money. However, this is simply not true. In actual fact when banks lend they create deposits:

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Billionaire wife, Actress and Mother-of-one, Regina Daniels is surely living her best life in matrimony and she is unapologetic about it.

Regina and her husband, billionaire business man, Ned Nwoko, hit a club in Abuja last night for a good time.

In the video the actress shared on social media, she can be seen twerking up a storm for her 59-year-old husband.

Watch the videos below