Banking 3: Fractional Reserve Banking

With just 1000 pieces of fictional gold, Sal takes viewers through the process of fractional reserve banking. He explains how deposits made into a bank can be both assets and liabilities, and the role of having reserves. Additionally, he demonstrates the multiplier effect to show how the modern banking system is sustained.

7 Views 2 Downloads
Classroom Considerations
  • This resource is only available on an unencrypted HTTP website. It should be fine for general use, but don’t use it to share any personally identifiable information