In the context of a discussion about real wealth versus the representation of wealth (money), Sal explains the multiplier effect and how 1000 pieces of gold can become 2710 pieces of gold. Viewers will appreciate the annotations and...

With just 1000 pieces of fictional gold, Sal takes viewers through fractional reserve banking. He explains how deposits made into a bank can be assets and liabilities, and the role of having reserves. Additionally, he demonstrates the...

With bright, simple diagrams, Sal explains the role of the Federal Reserve in determining lending rates between banks. He also discusses open market operations and the way the Fed connects to Congress and the U.S. Government.

Can a bank issue endless loans and checking accounts without regard to the amount of money within its walls? Sal addresses this question throughout the lecture, where he introduces the concept of bank regulations - specifically reserve...

This video explains the intuition behind why the current account and capital account should balance. Sal Khan uses the U.S. 2007 account as an example. [7:14]

Sal Khan explains the Federal Reserve's open market operations. [4:36]