The cycle of money

Zing
Have you ever wondered where money comes from, and how it gets from Earthling to Earthling?

I did — and now I see why banks are everywhere! First, we know that money comes to banks from the Treasury. Now let’s see how money flows from person to person.

The Treasury, a bank, and an armored car moving money from the Treasury to the bank.

Zoey
Let me help with this one. Let’s pretend that your grandparents give you $40 for your birthday.
You don’t want to lose it, so you take the check to your bank and deposit it into your savings account.

The bank is now paying you interest — so you’re earning money! Cool!

Zoey
Now imagine that two months later it’s your mom’s birthday. You go to the bank and withdraw $10 cash, and then go buy your mom some flowers. Now your $10 is in the hands of the florist, who then deposits the money in her bank account.
Zing
So you see? The money has moved in sort of a circle, from hand to hand, first to the bank and then back again!
Zoey
Awesome! What’s next? Let’s review what we’ve learned!

Click the Next button to continue.