The document discusses the history of money and banking systems in the United States from 1791 to 2013. It covers different types of monetary systems including commodity money, representative money, fiat money, and credit money. It also outlines the establishment of the First and Second Banks of the United States and the creation of the Federal Reserve in 1913. Finally, it discusses fractional-reserve banking and how a bank run can cause a liquidity crisis for a bank.
16. 1791-1811 The First Bank Of the United States Bitterly opposed by Thomas Jefferson And James Madison as an engine for Corruption
17. 1816-1836 The Second Bank Of the United States Andrew Jackson denounced it as an engine for Corruption
18. 1816-1836 The Second Bank Of the United States Andrew Jackson denounced it as an engine for Corruption
19. 1837-1862 National Banks Currency backed with treasuries. Liquidity problems led to the 1907 panic.
20. 1863-1913 The Free Bank Era The state regulated reserves that were backed By gold and silver
21. 1913 Creation of the Federal Reserve Fractional Reserve Banking No confidence Loan Defaults Bank Runs Bank Bankruptcy 2008
22. How much does a $100 promise to pay equate to in fractional reserve banking?
23. In a fractional-reserve banking system, in the event of a bank run , the demand depositors and note holders would attempt to withdraw more money than the bank has in reserves, causing the bank to suffer a liquidity crisis and, ultimately, to perhaps default.
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25. Thanks to the sources: http://www.google.com – Google is Smart. http://www.sxc.hu/ http://en.wikipedia.org/wiki/History_of_central_banking_in_the_United_States http://en.wikipedia.org/wiki/History_of_money http://en.wikipedia.org/wiki/Fractional_reserve_banking http://en.wikipedia.org/wiki/Bank_run http://en.wikipedia.org/wiki/Pyramid_scam Human First!