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.

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

If some wants to invest in a fund the fund will sell them the share so they're always dealing with the fund itself in a closed end fund once the fund is created it's share pool is fixed and if someone wants to buy or sell a share it happens in the secondary market so they're buying and selling from each other they're not dealing with the actual fund manager

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.

The person who runs it nicely describes it as

And we covered that a couple of videos ago.

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.

And we went the fractional reserve route.

Grandfather, the clinic, the foundation,

That's what I'm going to talk about here

All kinds of funds and brokerages.

I want to deposit some money.

I trusted him with the money.

So what would be total demand liabilities?

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.

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.

Let's continue with the story of

So what happens?

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 how much could I expand my balance sheet?

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.

Oh, I have your winnings from last night.

Take a look at these.