Banking 101

Misconceptions Around Banking:

There’s a lot of confusion about how banks work and where money comes from. Very few members of the public really understand it. Economics graduates have a slightly better idea. In course we’ll discover how banks really work, and how money is created. But first, to clear up any confusion, we need to see what’s wrong about the way that most people think banks work:

Have you read this article?

Please Read the Following Article:

What is a dollar? Sure, it allows us to buy things like food, cars, and iPods; yet, most of us don't really understand money beyond that. Dr. Martenson not only provides an understandable definition, but also explains what gives our green pieces of paper value, and what dangers any currency must face.

 

Understanding how money is created provides a foundation for appreciating the implications of our massive levels of debt, because it tells us how that debt came into being. As John Kenneth Galbraith once said, "The process by which money is created is so simple, the mind is repelled." Dr. Martenson walks us through this simple process of fractional reserve banking. 

WHAT YOU NEED TO DO:           Due: 12/18/15

Following the readings and viewings in this post, you should have a working understanding of how money is created, without being "minted" at the Federal Reserve.

Using Google Docs, explain, in detail, "How Money is Created" (that's the title for your essay).

The completed paper MUST be embedded in your BLOG, you will need to re-size the view window. I use the following: width="800" height="1200".

The completed paper MUST be in "accurate" MLA format. Refer to older BLOG posts for review of this format. I will check for the following: Header with last name and page number, Heading with name, instructor, class, date, Title, and paragraph rules (indent and double-space).

NOT including the above items, the content of your essay may be no less than 250 words. Use CTRL+SHIFT+C to use the DOCS word count. Remember to subtract out your paper heading information.

Once, the paper is completed and properly embedded, please send me an EMAIL with your BLOG address. I would suggest that you complete the essay earlier than the due date, if you need to make corrections to increase your score, this will allow you the time to do so.