This teaching module explains how the U.S. banking system uses excess reserves to create money in the form of new deposits for borrowers. The module is part of a computer-animated series of four-to-five-minute modules illustrating standard concepts in high school economics. Although the module is designed to accompany the video program, it may be used independently. An "Economic Content" section provides teachers with supplemental economic background information to facilitate the use of the materials in the classroom. "Before the Viewing" activities introduce students to the concept of how banks create money and enhance their comprehension when viewing the program. "After the Viewing" activities expand upon the concepts presented in the video and, through classroom discussions, an interactive simulation, and student worksheets, give students a chance to practice their understanding of how banks create money. (BT)