banking system explained how banks create money fractional reserve banking modern banking system financial system explained bank deposits explained money creation banking bank run explained Your bank balance might not be real money. This video explains the banking system explained, how banks create money, and the truth about fractional reserve banking inside the modern U.S. banking system. If you’ve ever wondered how banks work, how money is created, or why the modern banking system holds more deposits than physical cash, this breakdown of the financial system explained will show you exactly what happens to your bank deposits. In the U.S. banking system, banks don’t simply store deposits. Through Fractional-Reserve Banking, banks expand the money supply by lending deposits
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