I'll open a bank account.

I have a lot of money in my savings account.

There is a reserve requirement.

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

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 10 of 110 is 11.

Keep this money for me.

But it's the same idea.

I could've actually issued bank notes, same idea.

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

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.

To lay their just hands on that Golden Key

And we went the fractional reserve route.

Please deposit the money in a bank.

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.

He has some money in the bank.

So let's just say I take another 100 gold pieces in deposits, 100 gold pieces of actual deposits.

That means as long as at any given moment in time, more than 20 of these people don't demand their money back, the bank's going to have liquidity.

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,

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

Come on, come on, come on. To lay their just hands on that Golden Key

Sookie will get the house my bank account.

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

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 once again, I say, well, these are demand deposits, which means that these farmers could demand them at any time.

So how much could I expand my balance sheet?

If you run out of cash, you can fall back on your savings in the bank.

He has plenty of money in the bank.

I have 100 in terms of the building itself.