Banking 9: More on Reserve Ratios (Bad sound)

Banking 9: More on Reserve Ratios (Bad sound)

Seeing how haven ratios extent how most lending we can do.


14 Responses to 'Banking 9: More on Reserve Ratios (Bad sound)'

  1. DUCATI1098100 - March 9th, 2010 at 11:44 pm

    Two thumbs up!!! Very educational…Thanks for posting. Surprise so few have seen this…no wonder education is dropping in this country.

  2. Myrkul1029 - March 9th, 2010 at 11:44 pm

    the answer to idazeferina’s question is in video 6

  3. Pantz104 - March 9th, 2010 at 11:44 pm

    What about high-powered money?

  4. Evulmeh - March 9th, 2010 at 11:44 pm

    You don’t pay him with the money that the bank owes you.

    what the bank merely does is transfer it owing you X amount (x being what you loaned) to the owner of the house.

    checking accounts are basically an “I owe you”

  5. idazeferina - March 9th, 2010 at 11:44 pm

    maybe I should listen to the further lessons to find the answer, so excuse me for being impatient with the question:
    When the bank gives a loan and accordingly issues Notes/Checks … don’t people who have an investment capital start spending it, and usually spend ALL of it for their expenses and not only 10%?
    When bank gives me a mortgage, very next day I go and spend it all by paying the owner.
    Where that money comes from when bank has only 10% of reserves?

  6. sharksniff - March 9th, 2010 at 11:44 pm

    evan with the “bad sound” the video was still briliont!

  7. BigPurple121 - March 9th, 2010 at 11:44 pm

    So if an asset becomes worth less than the loan given out and the depreciation is more than the amount remaining on the reserve ratio, you’re in trouble.

  8. jackuy12345 - March 9th, 2010 at 11:44 pm

    good job

  9. pjblabla - March 9th, 2010 at 11:44 pm

    You have done an excellent job in diffrentiating solvency from liquidity

    that’s the problem in the current financial crisis – people thought banks were not liquid – however, the problem was much graver – most banks were not solvent

  10. melaiphanat - March 9th, 2010 at 11:44 pm

    i really like this i learned alot

  11. jgposner - March 9th, 2010 at 11:44 pm

    Where is this documented? I want to write something up on this but even though you are a good source I would like to reference the law or regulation itself. Who made this law or regulation? Congress? A committee? Does the Fed set the reserve ratio or someone else?

  12. tiger12220 - March 9th, 2010 at 11:44 pm

    Still confused…but ill keep watching

  13. dallenchao - March 9th, 2010 at 11:44 pm

    Sal, just wondering if you write out your scripts before producing the vids?

  14. smallbighorn - March 9th, 2010 at 11:44 pm

    where is 8?


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