Central Banks Questions

achilleas999 — Sun, 13 Sep 2009 22:46:44 GMT

Recently i ve read articles about FED and ECB making Profits. I ve read mainly in this website that FED just 'prints' money. I know FED buys US Treasury bonds directly, ECB instead finances private banks which in turn they buy eurozone countries bonds.

Q1: Does ECB make money it uses to finance private banks out of thin air too?? If not where does ECB find those money?

Q2. What does it mean that a central bank makes profits?? FED creates money, why need to have profits anyway?? And the profits go to who??

thanks

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Central Banks Questions