Central Banks and Commercial Banks Compared in One Minute

You don't have to memorize the textbook definition of the term "central bank" or the textbook definition of the term "commercial bank" to understand what they are, the best approach (in my opinion) is comparing them to one another.

By understanding the similarities as well as differences between central banks and commercial banks, you'll learn a thing or two about how the financial system works. If you want to find out what a central bank is, what a commercial bank is and what the similarities as well as differences between central banks and commercial banks are, watch this video.

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[thesephiam]

"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.... I believe that banking institutions are more dangerous to our liberties than standing armies.... The issuing power should be taken from the banks and restored to the people, to whom it properly belongs."


-Thomas Jefferson

Is all that ever comes to mind when someone talks about central banks.

[mayankagarwal]

awesome work ... great videos .... keep going on and BTW about which book you are talking about??

[winnerboy]

Signed up and ready to order, really enjoy the videos and hope the book is even more informative!

[synaxarium]

Amazing video and narration, I would suggest adding something at the end of the video, so it wont have to end so suddenly

[subhalkhanna]

Please consider making video on investment banking as well.
I love ur work😍

[DistributistHound]

The value of money is not determined by its quantity or volume but by what it is able to purchase

[losttale]

Deposits also create debt (from the bank to the depositor)

[mattalexander]

Deposit taking has nothing to do with commercial bank lending. They don't need deposits to lend.

[khwajaali]

you talk so fast i had to slow down the video to understand

[mamdollahamini]

it is not that MBS are illiquid securities and nobody wants to buy them. It is exactly the main idea to bring the economy to such a point and buy everything cheap, because central banks are private sectors and owned by some private people, some greedy ones.

[cvofveu]

Do black banks need commercial banks or fedeal banks???

[editsblazing]

Wrong. The central bank (the federal reserve) does not print money or mint coins, BEP prints money and the mint makes specie…

[gorkemvids]

If central banks were owned by goverment, yes, thats true. But central banks are owned by "privates". Because of this, every boom and bust cycle, certain rich people got richer, poor gets poorer.

[armendibishi]

Banks have as much power to create money as a lolypop seller has, they are not allowed and also cant multiply money amount.