Tuesday, February 22, 2011

Kahn Academy: Banking System

I just finished the Kahn Academy series on the banking system. I thought it was a good overview of the banking system using a historical method to inform the viewer.
The one thing I didn't care for was the way Sal represents the modern banking system. For example in video 22 Fractional Reserve Banking 1, he starts off with the modern bank receiving 10 gold peices, then magically lending out 90 federal reserve notes. This might have worked fine before we got off the gold standard and when banks still printed their own notes but that is not the case now. I think it would be much clearer to say the bank received 100 dollars from depositors then lent out 90. Anyway, I still think it is a good series and worth watching.

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