Banks & Central BanksTrust

Twenty-Seven Dollars

Muhammad Yunus paid $27 to free 42 villagers, and it grew into a bank for millions

An economics professor walked into a village and found 42 people trapped by debts that added up to $27.

You'll find out

  • What a debt of pennies costs
  • What the professor did next
  • How $27 grew into a bank

Why it matters

Banks decide who gets trusted. This is what happened when someone trusted the people every bank turned away.

About 4 min7 interactive slides · 5 questionsLesson 59 · Zone 7

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More in this zone

  1. 55BankingWhat a Bank Really IsA middleman between savers and borrowers
  2. 56BankingMost of It Isn't ThereBanks keep only a slice of deposits on hand
  3. 57Gold ReservesThe Vault Nobody VisitsFort Knox holds about half of America's gold
  4. 58Deposit InsuranceWhy Your Deposit Is SafeThe FDIC has your back up to $250,000
  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