Macro: Unit 4.6 -- Bank Balance Sheets (T-Accounts)

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In this video, I will:
Explain how banks work
Define the fundamental components of a bank balance sheet: liabilities ands assets
Demonstrate how demand deposits and other liabilities create assets for a bank
Discuss how banks are able to repay liabilities from assets when withdrawals are requested
Illustrate how to use the reserve ratio to determine the required reserves a bank must hold
Define excess reserves
Explain how a bank will pull from excess reserves or financial investments in its assets
column in order to keep its loans outstanding when covering withdrawals
Review the fundamentals of how T-accounts must balance


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