00:01
How does the banking system work? commercial banks are financial institutions that carry out the functions of accepting deposits from the general public and granting investment loans with the goal of profiting.
00:16
Savings and loans associations are financial institutions that specialize in the acceptance of saving deposits and the development of mortgages and other lending.
00:28
Credit unions are a kind of financial cooperative that offers traditional banking services, large corporations, organizations, and other entities can form credit unions for their employees and members, ranging in size from small, voluntary -only operations to large entities with thousands of participants spanning the country.
00:49
Investment banks are financial institutions that offer a wide range of services.
00:54
Most investment banks are specialized in large and complex financial transactions, such as underwriting, acting as an intermediary between a securities issuer and the investment public, facilitating mergers and other corporate reorganizations and that sort of thing.
01:13
The fed is also an important part of our banking system, and the fed primarily regulates the growth of bank reserves and the supply of money to allow the economy to expand in a stable manner.
01:27
The reserve ratio is the amount of money that banks are required to keep on hand.
01:32
So like if it's at 10 % and somebody deposits $100, they have to keep 10 % as the reserves, which would be $10, and they could loan out the other 90...