Macroeconomics - The Monetary System[]
Fractional Reserve 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
- The larger the number, the more liquid the money
- Link to the video
- M0, M1, M2- a discussion of these different labels on money
Simple Fractional Reserve Accounting[]
- 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 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 rates[]
- 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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