The financial institutions create money through lending to people as loans and to which the interest rates depend on the amount deposited by their customers. In the first six minutes of the video, the American nation was in crisis, and the stock market had just collapsed. The worse was going to happen to the banks, and it happened when the Bank of United States received a lot of withdrawals from the public in the fear that the bank was going bankrupt. Due to this, billions of dollars were withdrawn from the bank living the bank with no money to lend, and therefore there was no money creation, and this compelled the bank to close down as there were no deposits in the bank accounts. There is, therefore, the need to develop a federal reserve that will provide a safer, more flexible and a more stable financial system that would restore confidence to the people that their money won’t get lost.