Credit (or money) creation theory

This article looks at the credit or money creation theory which uses the concept of fractional reserve lending. This is where banks keep only a fraction of their deposits in reserve (as cash and other highly liquid assets) and lend out the remainder, while maintaining the simultaneous obligation to redeem all deposits immediately upon demand.

http://en.wikipedia.org/wiki/Fractional-reserve_banking

You can view this process on a youtube video:
http://www.chrismartenson.com/crashcourse/chapter-7-money-creation

The role of Money

Notes on What money is:
http://www.bized.co.uk/virtual/bank/economics/money/theories1.htm

Notes on the 3 different types of banks:
http://www.bized.co.uk/virtual/bank/economics/money/expl.htm

Notes on the Money supply (M0and M4):
http://www.bized.co.uk/virtual/bank/economics/money/theories4.htm

Youtube video on Money - what it is and its role.
http://www.youtube.com/watch?v=riqGvq9-ej8

Another video on the role of money.
http://www.chrismartenson.com/crashcourse/chapter-6-what-money