So this is my equity.

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

And a lot of licit banks were also happy to accept deposits from very dubious sources without questions being asked.

I just give them a checking account.

And like all of the other examples,

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

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

By doing that simple thing, there was an increase in enrollment by 20 percent and there was an increase in the amount of people willing to save or the amount that they were willing to put down into their savings account by four percent.

The money rests in a safe at the bank.

So how can we do that?

So what would be total demand liabilities?

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

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

If this is 1,000, 900 might be about that.

Scarlett's deposits.

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 10 of 110 is 11.

Now, the first entrepreneur, he's very conservative and he's been saving all his whole life to do this.

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

But regular cash deposits were made to your personal accounts, somewhere upwards of 5,000.

Accept it.

I can make a checking account, 100.

(Laughter)

I want to deposit some money.

And we went the fractional reserve route.

Accept

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

Take the fucking money!

I'll open a bank account.

I have a fairly wealthy village.

The bank keeps money for people.

Accept incoming notes

He deposited the prize money in the bank.

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

Accept

You can't read minds, you can't tell if someone likes you or not so... yeah, just deal with it. Deal with it.

Embrace?

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.

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.

And there's a couple of reasons why that's really bad.

The bank where they keep the money,

His intake form.

He will accept any money he can get.