Banking and Money (Khan Academy)
1,000 Gold Coins, 2,710 of Deposits
The bank lends, the money comes back as a new deposit, and the bank lends again. No new gold is dug up, yet the money in accounts nearly triples.
18 min185 XP available10 challenges
Olivia sold her T-shirts at the talent show, so her piggy bank now holds €55. She still owes Breno’s shop €40 for the amp. She hands €50 of coins to Breno, who locks them in his strong safe and writes “Olivia: €50” in his book.
Entries to post
0 of 4 entries placed
Pick an entry, then choose whose sheet it lands on and which side. Every sheet must balance.
Olivia
Singer-songwriter, 12, saving for her first gig
PersonAssets
What it owns
- Guitar€30
- Amp€40
- Piggy bank€55
Liabilities + equity
What it owes + what’s truly its own
- Owed to Breno’s shop€40
Equity
- Equity€85
Breno’s Bank
A strong safe in the back of the music shop
Commercial bankAssets
What it owns
- Safe€10
Liabilities + equity
What it owes + what’s truly its own
Equity
- Equity€10
Answer to continue.