This is liabilities.

He applied the money to the payment of debts.

I was absolved from paying my father's debt.

So it's essentially a debt.

That's equity.

I will pay my debt as soon as possible.

I can pay off my bank loan!

Everything on the liabilities right now is on demand loans, which means whoever has that liability can come back and exchange it for gold at any moment in time, but the bank could've taken just a regular loan

Our debt is more than we can pay.

And instead of actually taking it out of my assets here and then waiting maybe for his laborers to redeposit it,

Maybe you're sixty five years old.

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I must return a debt every month.

Her debts amount to more than she can pay.

And it got bailed out by the sovereign wealth fund.

She didn't want the money back that she'd given him, or an apology for the black eye he'd given her.

IT OWES ME A DOLLAR!

The Civil War. Even more expensive.

Some of the men don't feel the need to pay their debts anymore.

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

You brought us to pay off your debt?

You could say, OK in years at times zero like if I just borrowed the money, I just paid it back immediately, it'd be 100, right?

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

I just give them a checking account.

Scarlett's deposits.

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

So 10 of 110 is 11.

It's time to pay up all your debts and close out your loan.

Maybe that's the time your kids can start go to college but not give you enough time to save more money for retirement or to give you time to pay off more of the mortgage and maybe save up some more money for college.. hey ten years was perfect for me if you think when you're forty years old and hey

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

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So now you have 10 billion in cash.

I want to deposit some money.

And we went the fractional reserve route.

I'll open a bank account.

I have a fairly wealthy village.

They're giving it to me for safekeeping.

Let's say I take a 100 gold piece deposit, and of course I have an offsetting checking account that those people can at any point use either to write checks or at some point they can come back and demand their money back.

The bank keeps money for people.

Give me the money!

Give me back my money!

He deposited the prize money in the bank.

The money rests in a safe at the bank.

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