The discount rate | Money, banking and central banks | Finance & Capital Markets | Khan Academy

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The discount rate and window. Lender of last resort. Created by Sal Khan.

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Finance and capital markets on Khan Academy: We all use money and most of us use banks. Despite this, the actual working of the banking system is a bit of a mystery to most (especially fractional reserve banking). This older tutorial (bad handwriting and resolution) starts from a basic society looking to do more than barter and incrementally builds to a modern society with fraction reserve banking. Through this process, you will hopefully gain a deep understanding of how money and banking works in our modern world.

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