Banks & Central BanksBanking

Most of It Isn't There

Banks keep only a slice of deposits on hand

Your bank has your money. Just not in the building. What happens if everyone asks for it on the same day?

You'll find out

  • How much cash a bank really keeps
  • Why one rumor can sink a bank
  • The run that stunned Britain in 2007

Why it matters

A bank runs on trust that not everyone comes at once. Seeing why makes the safety net under it make sense.

About 3 min6 interactive slides · 5 questionsLesson 56 · Zone 7

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More in this zone

  1. 55BankingWhat a Bank Really IsA middleman between savers and borrowers
  2. 57Gold ReservesThe Vault Nobody VisitsFort Knox holds about half of America's gold
  3. 58Deposit InsuranceWhy Your Deposit Is SafeThe FDIC has your back up to $250,000
  4. 59TrustTwenty-Seven DollarsMuhammad Yunus paid $27 to free 42 villagers, and it grew into a bank for millions
  5. 60Central BanksThe Fed Sets the Price of MoneyOne rate in Washington ripples into your loans
  6. 61Money CreationBanks Just Lend Out SavingsWhen a bank makes a loan, it creates new money
  7. 62Savings AccountsThe Savings Account GapThe same money can earn hundreds of times more one tap away
  8. 63Behavioral EconomicsMental AccountingA dollar is a dollar, but we don't treat it that way