In class we talked about the role of banks in our financial system. Students should be familiar with the reserve ratio (% of reserves banks are required to keep on hand) set by the fed and bank regulation (FDIC, capital requirements, reserve requirements, discount window). T accounts displaying a bank's (or business's) financial position were also discussed.
Finally, discussion surrounded banks ability to make money and the multiplying affect of a checkable bank deposit that is determined by the reserve ratio.
The notes are attached and the homework is listed below.
Notes - The Role of Banks
HW - Read Module 26 and Module 27
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