Financial Literacy - Financial Institutions

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...

As an introduction to the institution and function of banks in society, this video walks viewers through the concept of banking with colorful annotations and simplified narration. The lecture evolves naturally into a discussion about...

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...

Why carry around a heavy suitcase full of gold when you can write a check to your neighbor in the village? Sal's village banks flourishes in this video with the introduction of checks, demonstrating how a check essentially works. While...

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 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 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.

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...

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...

Going deeper into the concept of the Federal Funds Rate, this video guides viewers through the process of inter-bank lending, much like the previous video (Banking 14). Sal's easygoing approach is simple to understand and fun to watch.