FRB Commentary 2: Deposit Insurance

Going into more detail about the potential weaknesses of fractional reserve banking, this video introduces some of the ways that the economy has been engineered to fix these issues, such as the "lender of last resort" and insurance from the FDIC. Sal explores the value and effects of each solution in the context of a modern economy - including what happens in a banking crisis.

Additional Tags

fdic, bank runs, liquidity, solvency, fractional reserve banking, insolvency, illiquidity, lender of last resort, receivership, deposit insurance, federal deposit insurance corporation, math

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Resource Details

Grade

9th - Higher Ed

Subjects

Math

4 more...

Resource Type

Instructional Videos

Media Length

17:19

Audiences

For Teacher Use

1 more...

Instructional Strategy

Flipped Classroom

Accessibility

Closed Captions

Usage Permissions

Creative Commons

BY-NC-SA: 3.0