What's the balance of my account?

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

So it looks like you took a loss negative 100.

And then when A takes this check that he got from D, brings it back to the bank.

At the beginning of the week,

And he wants half of that in his checking account.

We're using 200 of that, so now we've kind of overdrawn our bank balance.

So they'll start with your net income or actually they'll start with the cash that you started out with so they take you from this cash balance to that cash balance.

It's a little unrealistic, I kept it simple here and allowed us to have a negative cash balance just for simplicity, but usually you will not see a negative cash balance.

over the total amount of

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.

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.

So, he starts off with a negative balance, so a negative balance means that he's overdrawn his checking account.

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 want to deposit some money.

I trusted him with the money.

So what would be total demand liabilities?

AVAILABLE BALANCE 3,647,035.59

That way, 500 years later, it'll be worth billions.

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.

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.