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Introduction to Fractional Reserve Banking


Introduction to Fractional Reserve Banking

Introduction to Fractional Reserve Banking

Learn more about fractional reserve banking.


Students: 710
Course Description

Fractional reserve banking is a key concept in banking. It means banks maintain only a fraction of the total amount of money in all their customers’ deposit accounts as cash that is available for withdrawal by depositors.
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By doing this, banks free up large supplies of capital that can be loaned out to businesses, thereby helping to expand the economy. The economic system of most countries utilise this concept. This free online banking course explains in detail what fractional reserve banking is and how this banking system works. The course reviews the strengths and weaknesses of the fractional reserve banking system; for example, it helps economies grow but banks are also very vulnerable if there is a run on a bank and all depositors try to withdraw their money at the same time. As an alternative, full reserve banking is also explored and you will also see how money is accounted for in the balance sheets of banks. This free online banking course will be of great interest to professionals in the banking, finance, economics and business fields who would like a greater knowledge and understanding of fractional reserve banking and the strengths and weaknesses of this system of banking.

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Learning Outcomes

Learning outcomes: - Learn what fractions reserve banking is and how it works; - Understand what the main pros and cons of the system are; - Understand what the alternative, namely full reserve banking is; - Know what the different views of money are and how they are calculated; - Learn how banks present information about their key assets and liabilities;


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Module Title
Module 1: Introduction to Fractional Reserve Banking
Module 2: Introduction to Fractional Reserve Banking Assessment

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Background  
Course Rating (By Learners)
Course Title Introduction to Fractional Reserve Banking
Course # 550
Course Publisher Khan Academy
Course Category 2
Content Origin
Course Description  Fractional reserve banking is a key concept in banking. It means banks maintain only a fraction of the total amount of money in all their customers’ deposit accounts as cash that is available for withdrawal by depositors. By doing this, banks free up large supplies of capital that can be loaned out to businesses, thereby helping to expand the economy. The economic system of most countries utilise this concept. This free online banking course explains in detail what fractional reserve banking is and how this banking system works. The course reviews the strengths and weaknesses of the fractional reserve banking system; for example, it helps economies grow but banks are also very vulnerable if there is a run on a bank and all depositors try to withdraw their money at the same time. As an alternative, full reserve banking is also explored and you will also see how money is accounted for in the balance sheets of banks. This free online banking course will be of great interest to professionals in the banking, finance, economics and business fields who would like a greater knowledge and understanding of fractional reserve banking and the strengths and weaknesses of this system of banking.
License  This course is available from Khan Academy OpenCourseWare through the following Creative Commons licence:
Creative Commons License
Release Date 09 November 2012
   
Content  
Course Duration (Avg Learner) 1-2 Hours
Video/Audio High
Audio Only High
Animation None
Assessments Yes
 
Education Level
Age appropriateness 18+ Years
Minimum Grade/Class Level Higher High Secondary School
 
Validation Level 5
ALISON Testing Yes
Certification Availability
PDF Download Yes
Parchment Yes
Framed Certification Yes
   
Merchandise Availability
Marketing Information
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Course Forum  View

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  • Tulasari Rai United Kingdom I loved this course. 2014-10-20 18:10:57
  • Fred Mukonda Zambia nice course 2014-09-14 17:09:34
  • Ariel Francisco Pereira Gadea Argentina Concise and clear. 2014-08-30 20:08:03
  • Geeta Sewsankar Guyana I learned a lot, thanks team Alison 2014-07-22 17:07:32
  • Milo Abello Micronesia Very good short course. 2014-05-13 02:05:51
  • Mahdi Yousif Bahrain Great Videos with valuable financial knowledge and material 2014-05-01 15:05:33
  • David Spendiff United Kingdom Course Module: Module 1: Introduction to Fractional Reserve Banking Course Topic: Full Reserve Banking Comment: Excellent! Really interesting and appreciate what you are doing! 2014-01-14 22:01:36
  • Kelvin G Phiri Zambia Course Module: Module 1: Introduction to Fractional Reserve Banking
    Course Topic: Overview of Fractional Reserve Banking
    Comment: excellent..!!!!! 2012-11-16 20:11:02
  • Lilita V.C. Henry-Seaton Virgin Islands (British) Course Module: Module 1: Introduction to Fractional Reserve Banking
    Course Topic: Simple Fractional Reserve Accounting (part 2)
    Comment: Good. 2012-11-12 15:11:28
  • Lilita V.C. Henry-Seaton Virgin Islands (British) Course Module: Module 1: Introduction to Fractional Reserve Banking
    Course Topic: Simple Fractional Reserve Accounting part 1
    Comment: Good. 2012-11-12 15:11:13
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Free, Online Introduction to Fractional Reserve Banking Course.