{"id":177,"date":"2024-05-30T03:28:11","date_gmt":"2024-05-30T03:28:11","guid":{"rendered":"https:\/\/course.oeru.org\/maec103\/?page_id=177"},"modified":"2024-05-30T03:28:11","modified_gmt":"2024-05-30T03:28:11","slug":"reserve-banking-systems","status":"publish","type":"page","link":"https:\/\/course.oeru.org\/maec103\/learning-pathways\/introduction-to-monetary-policy\/reserve-banking-systems\/","title":{"rendered":"Reserve Banking Systems"},"content":{"rendered":"<div id=\"content\" class=\"mw-body container\" role=\"main\">\n<div class=\"row\">\n<div class=\"col-md-12\">\n<div class=\"panel\">\n<div class=\"panel-body\">\n<div id=\"bodyContent\">\n<div id=\"mw-content-text\" lang=\"en\" dir=\"ltr\" class=\"mw-content-ltr\"><div class=\"panel iDevice\">\n\t<div class=\"panel-heading idevice-heading\">\n\t\t<div>\n\t\t\t<img decoding=\"async\" class=\"pedagogicalicon\" alt=\"media\" src=\"https:\/\/course.oeru.org\/maec103\/wp-content\/themes\/oeru_course\/idevices\/Icon_multimedia.png\">\n\t\t<\/div>\n\t\t<div>\n\t\t\t<h2>Full reserve vs factional reserve banking<\/h2>\n\t\t<\/div>\n\t<\/div>\n\t<div class=\"panel-body\">\n\t\t<div class=\"col-md-12\">\n\t\t\t<\/p>\n<p>\n<\/p>\n<p>\n<\/p>\n<p>\n\t\t<\/div>\n\t<\/div>\n<\/div><\/p>\n<p>\n<\/p>\n\n<div data-mode=\"normal\" data-oembed=\"1\" data-provider=\"youtube\" id=\"arve-youtube-3mui9izb4t4\" style=\"max-width:400px;\" class=\"arve alignleft\">\n\t<div class=\"arve-inner\">\n\t\t<div style=\"aspect-ratio:500\/281\" class=\"arve-embed arve-embed--has-aspect-ratio\">\n\t\t\t<div class=\"arve-ar\" style=\"padding-top:56.200000%\"><\/div>\n\t\t\t<iframe allow=\"accelerometer &apos;none&apos;;autoplay &apos;none&apos;;bluetooth &apos;none&apos;;browsing-topics &apos;none&apos;;camera &apos;none&apos;;clipboard-read &apos;none&apos;;clipboard-write;display-capture &apos;none&apos;;encrypted-media &apos;none&apos;;gamepad &apos;none&apos;;geolocation &apos;none&apos;;gyroscope &apos;none&apos;;hid &apos;none&apos;;identity-credentials-get &apos;none&apos;;idle-detection &apos;none&apos;;keyboard-map &apos;none&apos;;local-fonts;magnetometer &apos;none&apos;;microphone &apos;none&apos;;midi &apos;none&apos;;otp-credentials &apos;none&apos;;payment &apos;none&apos;;picture-in-picture;publickey-credentials-create &apos;none&apos;;publickey-credentials-get &apos;none&apos;;screen-wake-lock &apos;none&apos;;serial &apos;none&apos;;summarizer &apos;none&apos;;sync-xhr;usb &apos;none&apos;;web-share;window-management &apos;none&apos;;xr-spatial-tracking &apos;none&apos;;\" allowfullscreen=\"\" class=\"arve-iframe fitvidsignore\" credentialless data-arve=\"arve-youtube-3mui9izb4t4\" data-lenis-prevent=\"\" data-src-no-ap=\"https:\/\/www.youtube-nocookie.com\/embed\/3mUi9IZb4T4?feature=oembed&amp;iv_load_policy=3&amp;modestbranding=1&amp;rel=0&amp;autohide=1&amp;playsinline=0&amp;autoplay=0\" frameborder=\"0\" height=\"224.8\" loading=\"lazy\" name=\"\" referrerpolicy=\"strict-origin-when-cross-origin\" sandbox=\"allow-scripts allow-same-origin allow-presentation allow-popups allow-popups-to-escape-sandbox\" scrolling=\"no\" src=\"https:\/\/www.youtube-nocookie.com\/embed\/3mUi9IZb4T4?feature=oembed&#038;iv_load_policy=3&#038;modestbranding=1&#038;rel=0&#038;autohide=1&#038;playsinline=0&#038;autoplay=0\" title=\"Video by Kahn Academy\" width=\"400\"><\/iframe>\n\t\t\t\n\t\t<\/div>\n\t\t\n\t<\/div>\n\t\n\t\n\t<script type=\"application\/ld+json\">{\"@context\":\"http:\\\/\\\/schema.org\\\/\",\"@id\":\"https:\\\/\\\/course.oeru.org\\\/maec103\\\/learning-pathways\\\/introduction-to-monetary-policy\\\/reserve-banking-systems\\\/#arve-youtube-3mui9izb4t4\",\"type\":\"VideoObject\",\"embedURL\":\"https:\\\/\\\/www.youtube-nocookie.com\\\/embed\\\/3mUi9IZb4T4?feature=oembed&iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=0&autoplay=0\",\"name\":\"Video by Kahn Academy\"}<\/script>\n\t\n<div class=\"arve-error\"><p><small><abbr title=\"Advanced Responsive Video Embedder\">ARVE<\/abbr> error: maxwidth: <code>400px<\/code> is not valid<\/small><\/p><\/div>\n<\/div>\n<p><br style=\"clear:both;\">\n<\/p>\n<p>Watch this Kahn Academy video, which explains fractional reserve banking. Be mindful that total reserves are the checkable deposits that the public has placed in a commercial bank. Required reserves are a percentage of the checkable deposits that must remain in a commercial bank as required by the Federal Reserve. Required reserves are set by the Federal Reserve to protect banks from customers running on the bank, i.e., reserves protects a bank from customer panic. Excess reserves are a percentage of checkable deposits that a bank is authorized by the Federal Bank to lend out. Consequently, required reserves are deposits from which the banks earn a profit through the loan and repayment process.\n<\/p>\n<p>Next watch this video, also from Kahn Academy, about full reserve banking.\n<\/p>\n<p>\n<div data-mode=\"normal\" data-oembed=\"1\" data-provider=\"youtube\" id=\"arve-youtube-rgmcswr8dny\" style=\"max-width:400px;\" class=\"arve alignleft\">\n\t<div class=\"arve-inner\">\n\t\t<div style=\"aspect-ratio:500\/281\" class=\"arve-embed arve-embed--has-aspect-ratio\">\n\t\t\t<div class=\"arve-ar\" style=\"padding-top:56.200000%\"><\/div>\n\t\t\t<iframe allow=\"accelerometer &apos;none&apos;;autoplay &apos;none&apos;;bluetooth &apos;none&apos;;browsing-topics &apos;none&apos;;camera &apos;none&apos;;clipboard-read &apos;none&apos;;clipboard-write;display-capture &apos;none&apos;;encrypted-media &apos;none&apos;;gamepad &apos;none&apos;;geolocation &apos;none&apos;;gyroscope &apos;none&apos;;hid &apos;none&apos;;identity-credentials-get &apos;none&apos;;idle-detection &apos;none&apos;;keyboard-map &apos;none&apos;;local-fonts;magnetometer &apos;none&apos;;microphone &apos;none&apos;;midi &apos;none&apos;;otp-credentials &apos;none&apos;;payment &apos;none&apos;;picture-in-picture;publickey-credentials-create &apos;none&apos;;publickey-credentials-get &apos;none&apos;;screen-wake-lock &apos;none&apos;;serial &apos;none&apos;;summarizer &apos;none&apos;;sync-xhr;usb &apos;none&apos;;web-share;window-management &apos;none&apos;;xr-spatial-tracking &apos;none&apos;;\" allowfullscreen=\"\" class=\"arve-iframe fitvidsignore\" credentialless data-arve=\"arve-youtube-rgmcswr8dny\" data-lenis-prevent=\"\" data-src-no-ap=\"https:\/\/www.youtube-nocookie.com\/embed\/RGMcswR8DnY?feature=oembed&amp;iv_load_policy=3&amp;modestbranding=1&amp;rel=0&amp;autohide=1&amp;playsinline=0&amp;autoplay=0\" frameborder=\"0\" height=\"224.8\" loading=\"lazy\" name=\"\" referrerpolicy=\"strict-origin-when-cross-origin\" sandbox=\"allow-scripts allow-same-origin allow-presentation allow-popups allow-popups-to-escape-sandbox\" scrolling=\"no\" src=\"https:\/\/www.youtube-nocookie.com\/embed\/RGMcswR8DnY?feature=oembed&#038;iv_load_policy=3&#038;modestbranding=1&#038;rel=0&#038;autohide=1&#038;playsinline=0&#038;autoplay=0\" title=\"Video by Kahn Academy\" width=\"400\"><\/iframe>\n\t\t\t\n\t\t<\/div>\n\t\t\n\t<\/div>\n\t\n\t\n\t<script type=\"application\/ld+json\">{\"@context\":\"http:\\\/\\\/schema.org\\\/\",\"@id\":\"https:\\\/\\\/course.oeru.org\\\/maec103\\\/learning-pathways\\\/introduction-to-monetary-policy\\\/reserve-banking-systems\\\/#arve-youtube-rgmcswr8dny\",\"type\":\"VideoObject\",\"embedURL\":\"https:\\\/\\\/www.youtube-nocookie.com\\\/embed\\\/RGMcswR8DnY?feature=oembed&iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=0&autoplay=0\",\"name\":\"Video by Kahn Academy\"}<\/script>\n\t\n<div class=\"arve-error\"><p><small><abbr title=\"Advanced Responsive Video Embedder\">ARVE<\/abbr> error: maxwidth: <code>400px<\/code> is not valid<\/small><\/p><\/div>\n<\/div><br style=\"clear:both;\"> <\/p>\n<p>Finally, read this chapter about monetary policy and bank regulations, <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/cnx.org\/contents\/QGHIMgmO@11.12:Cl79UYhC@3\/Introduction-to-Monetary-Polic\">Principles of Macroeconomics: &#8220;Chapter 15, Introduction to Monetary Policy and Bank Regulation&#8221;<\/a>.\n<\/p>\n<p>What are some of the differences between full and fraction reserve banking systems. Are they trying to accomplish the same end? Which system does the country you live in use? Share your thoughts with your classmates by writing a blog post. Remember to tag (WordPress) or label (Blogger) your blog post using the course tag: Principles_of_Macroeconomics\/MAEC103\/tag\n<\/p>\n<p><!-- \nNewPP limit report\nCPU time usage: 0.024 seconds\nReal time usage: 0.027 seconds\nPreprocessor visited node count: 189\/1000000\nPreprocessor generated node count: 1130\/1000000\nPost\u2010expand include size: 1968\/2097152 bytes\nTemplate argument size: 240\/2097152 bytes\nHighest expansion depth: 7\/40\nExpensive parser function count: 0\/100\n--><\/p>\n<p><!-- Saved in parser cache with key we_en-mw_:pcache:idhash:177095-0!*!*!*!*!2!* and timestamp 20240530032810 and revision id 1043145\n -->\n<\/div>\n<div class=\"visualClear\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-12\">\n<ul class=\"pager\">\n<li class=\"previous\">\n            <a href=\"\/maec103\/learning-pathways\/introduction-to-monetary-policy\/the-purposes-of-money\">\u2190 Previous<\/a>\n          <\/li>\n<li class=\"next\">\n            <a href=\"\/maec103\/learning-pathways\/introduction-to-monetary-policy\/monetary-tools\">Next \u2192<\/a>\n          <\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<div id=\"wenote-ids\"><script type='text\/javascript' id='wenotes-ids'>\n    var WEnotesSite = \"https:\/\/wikieducator.org\";\n    var WEnotesPath = \"\/Macroeconomics_monetary_policy\/What_is_money\";\n    var WEnotesSiteID = \"0e3d258fbd36841f92259eefcd41d5e9\";\n    var WEnotesPathID = \"905a696753b8eb5efac4e415fbabfb89\";\n    var WEnotesIDs = { site: \"https:\/\/wikieducator.org\", path: \"\/Macroeconomics_monetary_policy\/What_is_money\", site_id: \"0e3d258fbd36841f92259eefcd41d5e9\", path_id: \"905a696753b8eb5efac4e415fbabfb89\" };\n<\/script><\/div>\n<\/div>\n<footer><\/footer>\n","protected":false},"excerpt":{"rendered":"<p>Watch this Kahn Academy video, which explains fractional reserve banking. Be mindful that total reserves are the checkable deposits that the public has placed in a commercial bank. Required reserves are a percentage of the checkable deposits that must remain in a commercial bank as required by the Federal Reserve. Required reserves are set by [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":169,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-177","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/course.oeru.org\/maec103\/wp-json\/wp\/v2\/pages\/177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/course.oeru.org\/maec103\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/course.oeru.org\/maec103\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/maec103\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/maec103\/wp-json\/wp\/v2\/comments?post=177"}],"version-history":[{"count":1,"href":"https:\/\/course.oeru.org\/maec103\/wp-json\/wp\/v2\/pages\/177\/revisions"}],"predecessor-version":[{"id":178,"href":"https:\/\/course.oeru.org\/maec103\/wp-json\/wp\/v2\/pages\/177\/revisions\/178"}],"up":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/maec103\/wp-json\/wp\/v2\/pages\/169"}],"wp:attachment":[{"href":"https:\/\/course.oeru.org\/maec103\/wp-json\/wp\/v2\/media?parent=177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}