How Banks Use Loans to Grow the Economy

Miacademy & MiaPrep Learning Channel

This video provides a clear and accessible introduction to the role of banks, loans, and money in the economy. Using the relatable example of a friend starting a mobile dog grooming business, the narrator explains how banks operate as businesses that generate profit through interest on loans. It breaks down key banking concepts including principal, interest, reserve requirements, and the flow of money between savers, the bank, and borrowers.