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The bank uses your deposited money to give out loans. They then use the interest on those loans to pay you a slightly smaller interest rate on your deposition, and skim 1-2% for their own profit. In short, when you put your money into a savings account, you are telling the bank to loan your money to qualified borrowers.
If a bank kept a 100% reserve, they would be unable to pay you any interest on your savings, and they would be unable to make any profit. You'd might as well just burying you savings in a hole in the back yard.
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How do you make the percent sign on word?
Hold down alt and push the numbers 3 and 7 then tada! %
Why does a java byte variable only hold a minimum value of -128 and a maximum value of 127. I dont get why only those range of 3 digits. Its just holding 3 characters really. Why not hold AB2?
A byte is 8 binary bits, each of which hold a value of 0 or 1 (true or false). When counting in binary, a value of 11111111 is the highest value a byte can hold, this is 255. It doesn't matter what programming language is assigning a value to the byte, the highest it can hold is 255. A 'signed' byte uses one bit for the sign, and 7 for the value. Hence 7 bits can show values of up to 128 either side. That's a positive value of 1-127, along with the 0, and then negative values of -1 to -128. Again, regardless of the system assigning the value, 8 bits can only produce 255 different combinations.
How much weight can the average queen box spring and mattress hold?
it can hold about 600-700lbs
What does to hold in mean?
To hold something in means to repress it or refrain from expressing it. For instance, if you find something really funny, but you are in the middle of a church service, you might want to hold it in instead of laughing, so that you don't disturb the service.
What is the definition of have?
to possess; own; hold for use; contain
What is a reserve rate?
The amount of funds that banks must hold in reserves
The main functions of the National Bank of Ethiopia?
To license & supervise banks & hold commercial banks reserves & lend money to them.
Why do banks try to keep excess reserves as low as possible?
Because, the excess reserves they hold are going to stay idle in their vaults (safe deposit boxes) and are not going to earn any money for them. Instead if they loan it out to customers, they can earn an interest on the same. So banks try to keep their excess reserves as low as possible.
Why do banks hold excess reserves?
They would hold excess reserves when conditions are such that they earn very little, or risks of loss are greater than interest reward or as now, 2/1/12, when the Federal Reserve is actually paying interest to the banks to keep reserves. There's now about $1.4 trillion of excess reserves of banks held at the Fed. It resulted from the Fed stuffing the bank "persons" with money lent at near zero interest to replace that which the banks destroyed with the liar loans and CDO- CDS securities. While 13 million human persons are unemployed, it's nutty to maintain such credit scarcity. But that's "free enterprise."
Why do European Banks hold 67 percent of all the mutual funds purchased with US middle class taxpayer dollars?
European Banks hold 67 percent of all the mutual funds purchased with US middle class taxpayer dollars to control inflation.
Do banks hold ones own account in their vaults?
No. They do not keep customer's money in their vaults. Banks use the money from customers to make loans to other people, corporations, or governments. Bank regulations require banks to keep a certain percentage of total deposits in reserve. Reserves include currency in their vaults, deposits at the central bank (the Federal Reserve in the USA) and certain government bonds. These reserves are not tied to any particular customer's funds.
What are three limitations on the money expansion process?
1. Borrowers do something with the money they borrow 2. People do not withdraw cash. 3. Banks do not let reserves sit idle To the extent that people prefer to hold cash, the actual money multiplier will be smaller than the simple money multiplier because cash withdrawals reduce reserves in the banking system. Reduced reserves give banks less ability to make loans or buy bonds.
What is the capital requirement of universal banks?
Capital requirement is the amount of capital a financial institution is required to hold. The capital requirement for Universal Banks is four percent of their weighted average calculation.
What are the estimated reserves?
Not sure if this is a math/ statistics question. Reserves are assets you hold, but are not using immediately. There are oil reserves, mineral reserves (like gold reserves) and cash reserves. I think you need to rephrase the question for a proper answer.
When To Release The Reserves Withholdings?
Excess reserves will be released two times a year after initial hold.
What is the federal funds market?
From day to day, the amount of reserves a bank wants to hold may change as its deposits and transactions change. When a bank needs additional reserves on a short-term basis, it can borrow them from other banks that happen to have more reserves than they need. These loans take place in a private financial market called the federal funds market.
Why do European Banks hold 67 of all the mutual funds purchased with US middle class taxpayer dollars mmmh?
The European Banks hold 67 percent of all the mutual funds purchased with US middle class taxpayer dollars to tame inflation.
