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View Full Interview. The Legislative Branch is the only part of the government that can  authorize the borrowing of money. The Executive Branch can request  the money be borrowed but cannot authâ¦orize it. Avid political scientist with a strong focus on US History, including the political & military aspects of the US Civil War.
Banks borrow funds when needed to make loans to customers or to meet their reserve requirements. There are two major places where banks can go to acquire loans: the federal funds market, where it borrows excess reserves from another bank, or the Fed. At both places, the bank will pay an interest rate.