Redemption

So their liabilities increase accordingly.

Very few have ever been redeemed.

The price of the operation is the safe return of Scylla.

And then they have an offsetting liability which is just notes outstanding, which is literally saying that hey, these are notes that we've created.

Money cannot compensate for life.

He did. He served out his sentence.

I want to pay compensation for her sons.

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.

She deserves compensation!

Yeah, we got you covered, man, sure.

So 10 of 110 is 11.

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

This is the interest rate you assume.

I'll open a bank account.

I have a fairly wealthy village.

Greece can no longer pay off its debts.

He deposited the prize money in the bank.

I just give them a checking account.

The money rests in a safe at the bank.

No. No, then I'd have to give out refunds.

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.

I can't wait to stand over your shoulder and watch you write us a cheque.

I want to deposit some money.

I trusted him with the money.

So what would be total demand liabilities?

Targeting me won't get their money.

The damage was covered by insurance.

Taxes are the price we pay for a civilized society.

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.

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.