Federal Reserve story board

  Copy


More Options: Make a Folding Card




Storyboard Description

This storyboard does not have a description.

Storyboard Text

  • I am going to depoist my $1,000 into my checking account
  • Balance= $1,000. Now, the bank will lend money determined by the required reserve ratio.
  • Now, the bank is allowed to lend $900 because the RRR is 0.1 or 10%
  • The bank can lend Esther $900 and she can deposit it to her checking account.
  • Esther's $900 have now been included in M1. The loan caused the money supply to go from $1,000 + $900 = $1,000. Now, Esther can use her $900 to buy a car from Alex.
  • Alex deposits the $900 from Esther's account into his account. The bank keeps ten percent of his deposit ($90). Then , the bank will lend $810 to its customers which is then added to the money supply. Now, when you add $1,000 + $900 + $810 = 2,710
More Storyboards By estherrivera
Explore Our Articles and Examples

Try Our Other Websites!

Photos for Class – Search for School-Safe, Creative Commons Photos! (It Even Cites for You!)
Quick Rubric – Easily Make and Share Great Looking Rubrics!