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17 Responses to “Banking 8: Reserve Ratios”

1. 
   Comment by trotskij4
   August 14th, 2009

   In reality the …
   In reality the growth should be 10 ->> 100 = 1000%
   because you start from 10 and you should arrive to 100, that meens 10fold increase :)!
   long live GDP growth……
2. 
   Comment by high5flyer
   August 14th, 2009

   In this example the …
   In this example the Reserve Ratio is 20%Having a bank run is not a question of the percentage of customers coming in to claim their “money.” For instance, 20% of the customers could potentially be the ones with the least stake in the bank. It is more of a question of the amount of “money” being pulled out and not the amount of customers coming in to claim their “money.” I know you understand this and I am just clarifying your statement.
3. 
   Comment by blahdelablah
   August 14th, 2009

   @khanacademy
   You …
   @khanacademy
   You said in this vid that Federal Reserve Ratio is 10%. Going back to vid 3 of this series, you say (paraphrasing) the bank’s wealth exists in the fractional reserve system as long as investments boost the economy by a sufficient amount. So as far as I can see that means the economy of a society has to grow by (100-10% =) 90% in productivity for the banking system to stay solvent in terms of real wealth. Isn’t that a hugely unrealistic risk?
4. 
   Comment by blahdelablah
   August 14th, 2009

   @khanacademy
   You …
   @khanacademy
   You said in this vid that Federal Reserve Ratio is 10%. Going back to vid 3 of this series, you say (paraphrasing) the bank’s wealth exists in the fractional reserve system as long as investments boost the economy by a sufficient amount. So as far as I can see that means the economy of a society has to grow by (100-10% =) 90% in productivity for the banking system to stay solvent in terms of real wealth. Isn’t that a hugely unrealistic risk?
5. 
   Comment by caveltor
   August 14th, 2009

   Sal, you say at the …
   Sal, you say at the end that the bank has more ets than liabilities. Does not the bank have exactly the same amount of ets and liabilities? until it starts making some interest?
6. 
   Comment by likeriver
   August 14th, 2009

   wait… at 5:05 why …
   wait… at 5:05 why does the bank have to pay back a loan? I thought they were giving them out.
7. 
   Comment by BlindWebster
   August 14th, 2009

   Bank Runs are good. …
   Bank Runs are good. Endlessly building confidence in malinvested banks is bad. Banks that are not overextended would be survive, others would fail
8. 
   Comment by BlindWebster
   August 14th, 2009

   reload it
   reload it
9. 
   Comment by draggeddownthehole
   August 14th, 2009

   Yes, and that’s …
   Yes, and that’s called deleveraging and it contracts the money supply. That’s what happened and boosted the demand for the US dollar.
10. 
    Comment by jackuy12345
    August 14th, 2009

    no if u printed too …
    no if u printed too much money than the gold u got then money would be useless everything will rise and the country will fall
11. 
    Comment by girlinsanfrancisco
    August 14th, 2009

    why are some of the …
    why are some of the videos not available anymore?
12. 
    Comment by antsy9000
    August 14th, 2009

    there is no gold, …
    there is no gold, its all credits now. watch the fractional reserve video in this series.
13. 
    Comment by luke2468013579
    August 14th, 2009

    so have they …
    so have they printed more money than they have in gold?…thus are able to lend more than reserves?
14. 
    Comment by dontblamethemessenge
    August 14th, 2009

    if the reserve …
    if the reserve ratio is 20 percent.
    And if some people want to remove their savings from the bank.
    In order to remain on 20 percent, must the bank get back their lendings, so they musts request people that have loans at the bank to bring it back?
15. 
    Comment by dontblamethemessenge
    August 14th, 2009

    In fact the bank …
    In fact the bank does not need a vault.
    Because it is all numbers on a computer nowadays
16. 
    Comment by ariesas
    August 14th, 2009

    I love those, …
    I love those, especially bank notes of SAl Bank:D
17. 
    Comment by pongman
    August 14th, 2009

    Thank you.
    Thank you.