Macroeconomics - The Monetary SystemEdit

Fractional Reserve BankingEdit

Overview of fract res banking
  • Overview of fractional reserve banking
  • Weaknesses of fractional reserve banking[1]
  • Full reserve banking
    • his video discusses the difference
    • fractional reserve system (what we currently use)
    • Vs, full reserve systems
  • The Money Supply -
    • M0, M1, M2- a discussion of these different labels on money

Simple Fractional Reserve AccountingEdit

  • A two video set
    • They explain double entry bookkeeping uses the government, individual and the bank as the players in the examples
    • They do not state that this is double entry bookkeeping, but this is what is covered
    • The second video gets into how the fractional part comes into play through assets
    • Banks may lend 90% of their reserves and must keep 10%

Interest As The Price of MoneyEdit

  • Interest as rent for money
    Interest as rent for money
    • Sal shows on a supply and demand curve
    • how the interest is like rent for money
    • it's really as straightforward as the title of the video [2]

Money supply and demand impacting interest ratesEdit

  • Sal talks about how the banks make money by lending out money
  • The interest or rent is how they make money
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