A New Beginning Model 3

A New Beginning Redux - Model #3

In model #3 the actors begin with exactly the same account balances as they did in models 1 and 2.

As in the previous models, our grower friend starts with no money.

Grower	Dealer	Bank	Money/Deposits
Opening Balance: $0.00	Opening Balance: $2,250	Opening Balance: $1,250.	Total Money: $3,500. Deposit Liabilities: $3,500.

Grower

Dealer

Bank

Money/Deposits

Opening Balance:
$0.00

Opening Balance:
$2,250

Opening Balance:
$1,250.

Total Money: $3,500.

Deposit Liabilities: $3,500.

As before, all parties have accounts at the bank for which the bank has deposit liabilities equal to total money.

We now move on to review the bank's loan to the grower...