That's where all these people here put their money.

I have a lot of money in my savings account.

And let's say that I can, in the bank,

Put the money in the bank.

Keep this money for me.

So what I do is, I take their 900 gold pieces, and I take it as a deposit.

When you put money in the bank, you deposit it.

So this is the account of B. The account of Villager B.

So 10 of 110 is 11.

Checking,savings took out about 125,000 in cash.

I can make a checking account, 100.

I'll open a bank account.

I have a fairly wealthy village.

He deposited the prize money in the bank.

I just give them a checking account.

The money rests in a safe at the bank.

You know, about my money.

And I think something happened, right? He put aside a little cash for you.

It's in a safety deposit box.

Scarlett's deposits.

Please deposit the money in a bank.

Deposit your money in the bank.

Was it disco, was it Donna Summer, is that what killed America?'

He's a little bit richer, gives 200 gold pieces.

And we went the fractional reserve route.

I want to deposit some money.

I trusted him with the money.

So what would be total demand liabilities?

Please keep this money for me.

Well, no. Because then a bank take on arbitrary amounts of risk and there are regulations, although I think a bank would do it on their own to some degree, but there're regulations called reserve requirements that tell us how much lending can a bank do relative to its actual reserves. In this case, it's reserves of gold.

The bank keeps money for people.

He left his safe in my care.

Deposits on long term leases.

I entrusted my money to him.

And then instead of giving them actual gold,

although this would be an asset for him is a checking account.

That would be total bank notes in this case and bank notes are also something we'll later leave a world where every bank is issuing bank notes, but I just wanted to give you that kind of historical context, how bank notes even started off.

So how much could I expand my balance sheet?

What I could do is maybe 100 of it,

He has plenty of money in the bank.

I have 100 in terms of the building itself.

So how can we do that?

There is a reserve requirement.

Let me do that I'll do that in purple. These are checking accounts or notes deposit accounts for people.

Good morning, Melvin. Here's the money.