2. Banking 2: A bank's income statement
Introduction to the income statement of a bank (and to income statements in general).
3. Banking 3: Fractional reserve banking
Fractional reserve banking and the multiplier effect. Introduction to the money supply.
4. Banking 4: Multiplier effect and the money supply
How "money" is created in a fractional reserve banking system. M0 and M1 definitions of the money suppy. The multiplier effect.
5. Banking 5: Introduction to bank notes
Introduction to bank notes (which you are more familiar with than you realize).
7. Banking 7: Giving out loans without giving out gold
How banks can give out loans without ever giving out gold.
9. Banking 9: More on reserve ratios (bad sound)
Seeing how reserve ratios limit how much lending I can do.
10. Banking 10: Introduction to leverage (bad sound)
What leverage is. Why it is is good or bad. Leverage and insolvency.
12. Banking 12: Treasuries (government debt)
Introduction to government debt and treasuries. What it means when we say that Federal Reserve Notes are issued by the Reserve bank but are an obligation of the Government.
14. Banking 14: Fed funds rate
How open market operations effect the rate at which banks lend to each other overnight.
15. Banking 15: More on the Fed funds rate
More on the mechanics of the Federal Funds rate and how it increases the money supply.
16. Banking 16: Why target rates vs. money supply
The rationale for targeting interest rates instead of directly having a money supply target.
17. Banking 17: What happened to the gold?
Getting off the gold standard. A short discussion of the meaning of wealth.
20. Repurchase agreements (repo transactions)
Mechanics of repurchase agreements (repo transactions/loans)
22. Fractional Reserve banking commentary 1
Understanding the weak points of Fractional Reserve Banking
23. FRB commentary 2: Deposit insurance
More on the weaknesses of fractional reserve banking. The FDIC and deposit insurance and its side effects.
24. FRB commentary 3: Big picture
Summary of thoughts in last two videos. Discussion of why Fractional Reserve Banking is a subsidy to banks and allows them to arbitrage the yield curve.
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The discount rate and window. Lender of last resort. Created by Sal Khan.