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Last Updated: Wednesday October 08 2008 16:04 GMT

BBC money expert explains the bank deal

Declan Curry

The British government is lending banks billions of pounds to help them get through a cash crisis.

It's hoped the money will make it easier for people to get money from banks

We asked one of the BBC's top financial journalists Declan Curry to explain things.

Where is this money coming from?

The government collects money from people who work and from businesses like shops and factories.

But this is extra money, so it's going to have to borrow that from people all around the world.

What happens if the banks can't pay the money back?

If we don't get this money back, then the government might have less to spend on things like schools and hospitals.

Or it may have to pass on the bill to people who work, and get them to pay more tax.

Will it work?

No-one really knows for sure if this is going to work, and it's going to take a long time to find out.

So for now, we're just crossing our fingers.