Unit 3: MACROECONOMIC POLICY

Lesson 15a: Monetary Policy - How Banks Create Money

Something Interesting - Why are we studying this?

 

Watch this short clip from the Christmas movie It's a Wonderful Life:
It's a Wonderful Life Bank Run

Then read the first two short sections on the webpage linked below: "Definition of a Bank Run" and "How Banks Work: Demand Deposits" (only 8 short paragraphs). You may have to tap "Show Full Article" to see "How Banks Work: Demand Deposits"
What is a Bank Run?

After studying this lesson you should understand how bank runs may occur.

 

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Lesson 15a