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China buys US bonds Opens a modal. American-Chinese debt loop Opens a modal. Giving out loans without giving out gold. Moral hazard Opens a modal. So they’re still something khsn very stealable, but a check was nice because one, you could write a very large amount and also only, if we’re doing our authentication right, person A can write the check. More on reserve ratios bad sound.

And that was useful because you didn’t have to exchange cash. And person B says, oh, well, that sounds reasonable enough. Two Belgian policewomen shot dead …. Multiplier effect and the money supply.


Money, banking and central banks | Khan Academy

I’m very familiar with that concept as well. So everyone is happy. I’ll draw it actually down here. Finance and capital markets. The width shouldn’t matter. Instead let me just give you these pieces of paper that the bank says at anytime I can go and trade for gold pieces. Possible solution Opens a modal. Reserve ratios Opens a modal. The height kind of represents the quantity. These are my assets. Transaction records Opens a modal.

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This is just my bank’s balance sheet. Fractional Reserve banking commentary 1.

About half of will be gold pieces for B’s account. Introduction to bank notes Opens a modal. Karachi peace vital for security, stability: And person B says, well, an apple costs two gold pieces.

That’s my drawing of an apple. Introduction to leverage bad sound Opens kan modal. So person A gives person B– so person A has– maybe some of these weren’t 20s.

Bank notes and checks (video) | Khan Academy

Video transcript Let’s explore this notion of using something other than actual physical gold as a unit of exchange.

It’s also inconvenient because it weighs a lot. China keeps peg but diversifies holdings Opens a modal. Greek debt recession and austerity part 1 Opens a modal. And person B says, well, what is a check?


Paying off the debt Opens a modal. So person B gives person A a home, works for weeks to build a house. And then we also give him some cash, which are essentially bank notes in our current universe. Geithner plan 4 Opens a modal. But anyway, that’s an introduction to banks notes and checks. And that’s a lot easier than actually cutting up gold pieces and then having to put them all back together.

So this is all the bank has to do really. Floating exchange effect on US Opens a modal.

Someone else who trusts A says– call them person B– says, if it’s good enough for A, it’s good enough kkhan B. So why don’t you put equivalent in my checking account.