Module 1 · Lesson 2 · 9 min

Money as a Record-Keeping System

What you'll be able to do

  • Explain why a bank balance is an IOU from the bank, not a pile of cash with your name on it.
  • Describe how a bank loan creates a new deposit, and why that makes bank runs possible.
  • Spot the record-keeper in an everyday payment and say what power it holds over you.

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