Macroeconomics-The Monetary System

=Macroeconomics - The Monetary System=
==Fractional Reserve Banking==
*Overview of fractional reserve banking
*Weaknesses of fractional reserve banking
*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
==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 
==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
Category:Economics
Category:Macroeconomics