Banking 15: More on the Fed Funds Rate

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...

With an actual balance sheet from the Federal Reserve (from 2007, before all of the "banking silliness" began to happen), Sal walks viewers through the assets, liabilities, and equity of the Fed. Pupils will be pleased to see how the...

Exploring a world with more than one bank, Sal illustrates the balance sheets of each fictional bank, as well as explaining the possible problems that could result with inconsistent reserve ratios requirements. The video details how one...

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...

Taking viewers through the process of creating a reserve bank (Federal Reserve), Sal introduces the idea of government involvement in modern banking. Additionally, he explains the obligation of the government to cover the reserves, and...

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

Using dual diagrams and workspaces, Sal provides a thorough explanation of target rates and money supply. Your class will appreciate his anecdotal approach to explain how interest rates are set, and how it affects potential "consumers of...

Posing a central question about how the economy can increase or decrease its money supply (5:00), Sal launches into a discussion about an expanding, or "elastic" money supply that can change along with its economy. Viewers will finally...

Using his example of a growing village bank, Sal (the narrator) explains the ins and outs of the banking business, mostly from the perspective of the banker. This point of view can be helpful for people who see the bank as an institution...

From the First and Second Banks of the United States to the founding of the Federal Reserve, discover how the American nation attempted to reform its financial history throughout the years.