Click here to start
Table of contents
Money and Banking: How Money Is Created (or Money From Nothing)
What Is Money?
Liquid Money: M1
Less Liquid Money: M2
What about credit cards? Debit cards?
Modern Banks are Not Like Your Piggy Bank
Fractional Reserve Banking
Bank Runs: Trouble for Fractional Reserve Banks
Bank Accounting
Bank Accounting – An Example
Fractional Reserve Banking Creates Money
Slide 12
The Banker’s Dilemma: Safety? or Profits?
The Federal Reserve Sets a Minimum Reserve Amount
Excess Reserves
Too-Little Reserves
Let’s Look at An Example
PowerPoint Presentation
Slide 19
Slide 20
Slide 21
Slide 22
Slide 23
Slide 24
Slide 25
Slide 26
Slide 27
Slide 28
Slide 29
Slide 30
Slide 31
Slide 32
Slide 33
So Ends the Short Story of Acme Bank
Slide 35
Ultimate Impact On M1 of New Reserves
Author:
James Luke
E-mail:
lukej@lcc.edu