I worked for a bank for 5 years, and could never get anyone to explain it to me as succinctly. This is the kinds of things that should be in a 'personal finance curriculum'. Thanks!
Thank you for starting on accounting!!! Please, please, please do more! I'm an accounting student and your videos are really the best out there. Plus, you don't know how many accountants need a refresher on the fundamentals from time to time.
🎯 Key Takeaways for quick navigation: 00:00 🤖 A balance sheet shows a company's assets, liabilities, and owner's equity, where assets provide future value and liabilities represent obligations. 01:56 🛡️ Owner's equity is the value the owners have in an entity, calculated as assets minus liabilities. 03:24 💼 Starting a bank involves acquiring assets like equipment and buildings, which contribute to owner's equity, with no initial liabilities. 05:21 🤖 In a full reserve banking scenario, a bank keeps deposits safe without lending them out, maintaining 100% reserves. 06:21 🛡️ In fractional reserve banking, a bank can lend out a portion of deposits, creating assets (IOUs from borrowers) and maintaining reserves. 08:18 💼 Banks exchange cash reserves for IOUs from borrowers when lending, considering these IOUs as assets for future benefit. 08:47 🤖 In the next video, you'll learn that banks can create assets by leveraging reserves, a concept in fractional reserve banking.
Mister Khan, no wonder you end up in Forbes... you have complicated that which is very simple... and extremely absurd. You sure know how to turn absurd into normal. Shame on this type of education.
I worked for a bank for 5 years, and could never get anyone to explain it to me as succinctly.
This is the kinds of things that should be in a 'personal finance curriculum'.
Thanks!
Thank you for starting on accounting!!! Please, please, please do more! I'm an accounting student and your videos are really the best out there. Plus, you don't know how many accountants need a refresher on the fundamentals from time to time.
🎯 Key Takeaways for quick navigation:
00:00 🤖 A balance sheet shows a company's assets, liabilities, and owner's equity, where assets provide future value and liabilities represent obligations.
01:56 🛡️ Owner's equity is the value the owners have in an entity, calculated as assets minus liabilities.
03:24 💼 Starting a bank involves acquiring assets like equipment and buildings, which contribute to owner's equity, with no initial liabilities.
05:21 🤖 In a full reserve banking scenario, a bank keeps deposits safe without lending them out, maintaining 100% reserves.
06:21 🛡️ In fractional reserve banking, a bank can lend out a portion of deposits, creating assets (IOUs from borrowers) and maintaining reserves.
08:18 💼 Banks exchange cash reserves for IOUs from borrowers when lending, considering these IOUs as assets for future benefit.
08:47 🤖 In the next video, you'll learn that banks can create assets by leveraging reserves, a concept in fractional reserve banking.
i just saw u on 9gag. giving the world free education..... u are a great man
what a great voice too
You gotta add this vid to the microeconomics playlist, Sal.
All your videos are soo useful, keep it up and thanks! :D
we watched khan academy in my class today. :D
Can't wait for the next video.
trust me most critics do understand how Fractional reserve banking works... that's why they criticize it.
8:35
Khan academy in class = classception
@khanacademy is there anything you dont know?
lol "physical cash" ^^ how cute
Mister Khan, no wonder you end up in Forbes... you have complicated that which is very simple... and extremely absurd. You sure know how to turn absurd into normal. Shame on this type of education.