THIS IS FOR AN ANIMATED VIDEO

Purpose: Identify who prints and who distributes dollars to banks. Explain how the interaction between the bank and the public creates additional deposits.

What government organization is responsible for printing US currency.

1. What government organization is responsible for distributing that currency to retail banks?
2. What government organization is responsible for insuring the deposits in banks.
3. How do banks and the public interacting create additional deposits (spendable money) through the lending and deposit process?

a. Define the fractional reserve banking system.

b. Show an example that includes:

i. amount of your choosing as an initial deposit,

ii. reserves held with a 10% required reserve ratio,

iii. amount of loan with no excess reserves held, and

iv. how loan proceeds are redeposited.

Take this through two rounds to show the creation of spendable money from the process. Be sure to make clear the total created.

Prior to creating the video, complete the Money and Banking Pre-Work Document attached below.

MONEY AND BANKING EXPLAINER VIDEO PRE-WORK DOCUMENT The purpose of this document it to focus your attention to the required elements of the video before you start building your deliverable. 1 ) 3) 4 3 What government agency is responsible for printing maney? What government organization is responsible for distributing that currency to retail banks? What government organization is responsible for insuring the deposits in banks. How do banks and the public interacting create additional deposits (spendable money) through the lending and deposit process? Define the fractional reserve banking system. Example: Use the following assumptions when you create your example below: a}l Al currency is deposited in hanks b) Banks hold no excess reserves. What amount are you choosing as your initial Deposit for your example? (You can't use $1,000 or $10,000} 7) Round 1: a) How much will be held in reserves held with @ 10% required reserve ratio in Round 17 b) What is the amount of loan with no excess reserves held in Round 1?7 ) How much of the loan proceeds are redeposited to kick off Round 27 8) Round Z: a) How much will be held in reserves held with @ 10% required reserve ratio in Round 27 b) What is the amount of loan with no excess reserves held in Round 27 ) How much of the loan proceeds are redeposited ? 9) What is the simple meney multiplier when there is a 10% required reserve ratio? 10) When the process is complete how much money does your initial deposit lead to