I have 300 gold pieces of reserves

That means for every dollar you deposit, it loans out about nine or 10.

Deposits equal liabilities from a bank's point of view.

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

He deposited the prize money in the bank.

The money rests in a safe at the bank.

I guess you could say non cash assets, right?

That and money.

And investor D thinks he has 200,000.

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

It's in a safety deposit box.

So 10 of 110 is 11.

Supporting financially

I met him on the train.

I just give them a checking account.

I have a lot of money in my savings account.

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.

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

Now, who are they accountable to?

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

To make money it is necessary to have money, capital.

I trusted him with the money.

I'll open a bank account.

I have a fairly wealthy village.

I put the money in a three year time deposit at the bank.

let's have corporations take over, and that's not true.

We've got our funding.

But it's the same idea.

He left his safe in my care.

I entrusted my money to him.

And then instead of giving them actual gold,

You know, about my money.

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

Scarlett's deposits.

One fundraiser with my pals you'll never need another cent.

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.

And in between, there should be a public agency, the Independent Service Authority, which channels public money, and especially donor money, to the retail providers.

And of course, these people benefit because they get safekeeping for their accounts and their money is actually growing.

Hey.

We opened today.

I mean, I could even have a denomination that's it could be a 500 gold piece.

I have 100 in terms of the building itself.

There is a reserve requirement.

So how much could I expand my balance sheet?

So let's say this is my original deposit, or my principal.