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Module 25 Banking and Money creation - Coggle Diagram
Module 25 Banking and Money creation
Monetary Role of bank
M1 and M2 Money supply
Bank Deposits
Problem of Bank Runs
Depositor Withdrawals
Panic-driven withdrawal
Liquidity Crisis
Deposit Insurance
Guaranteed repayment form by the government
Bank regulation
capital requirement
reserve requirements
deposit insurance
The discount window
problem of bank runs
Bank regulation
discount window
emergency funds from central banks.
liquidity crisis
convert deposits to loans
what bank do
Assets and liabilities
Financial intermediaries
connect savers and borrowers.
liquidity creation
convert deposits to loans
T-account
Tracks assets(loan) vs. liabilities(deposits)