Assign groups. One group is the bank, two groups are savers and the other groups are entrepreneurs who are asking the bank for loans. Give some time for them to come up with a business plan to ask the bank for a loan.
Give the savers 200 dollars each and explain they are depositing their money into the bank.
Allow the bank to allocate the 300 dollars how they want based of the best business plans.
Discuss any recent major topic (covid, housing crises, stock market crash, natural disaster etc..) and how it can cause a recession. After the money is allocated send a group of savers to the bank to collect there 200 because they are nervous about the current market might crash. When they only only get back 100 and the other group gets nothing ask if anyone wants to keep their money in the bank anymore.
If you would like this lesson to go longer we have had students create a brochure for NCUA and FDIC as if they are trying to get people after the depression to reinvest money back into banks. Typically we just take the one class period though.