We'll borrow some money on the house.

We'll use the house as collateral so we can borrow some money.

Leverage.

We hold the bond on Jessup Dolly, and now he's a runner, it looks like.

Central Europe, unsecured.

And the bank thinks it got a great deal.

And you end up with a mortgage backed security.

Because I owe that to other people.

Was it a correct decision?

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

I have a whole video on mortgage backed securities.

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

And then I have 200 gold pieces that I just put into my building just to start it off.

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.

I'll open a bank account.

I have a fairly wealthy village.

We would create incentives for securitization.

I have 4 billion in residential CDOs, collateralized debt obligations.

The insurance?

He deposited the prize money in the bank.

I just give them a checking account.

The money rests in a safe at the bank.

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.

So these shares each of these one million shares this is a mortgage backed security.

So just in kind of our everyday personal finance world, your mortgage is actually secured debt.

And the loans are just the right on these 10 payments.

This is highly rated mortgage backed securities, maybe they have a slightly higher interest rate.

And we went the fractional reserve route.

Yeah, till next month when the town council meets. Marshal's pension fund.

I think it's a distraction.

Early on the first year premium using of that kind of just goes to the insurance company

I want to deposit some money.

I trusted him with the money.

So what would be total demand liabilities?

I'm not so sure you want the maintenance and safety department. The fire department might be a better bet.

A deposit.

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 they'll go and they'll deposit it in maybe bank 1 over here, then over here in bank 2, and since there's more money in bank 1 and bank 2 you have the supply of money going up supply going up and also the demand for reserves is going up this cash right here, these are reserves.

The bank keeps money for people.