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How would decreased cash reserves and gold reserves affect banks?
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What would happen to the checkable deposits if banks purchase securities using reserves only and are not making loans?
well they will die
Are Liquidity Ratios the higher the better?
No. High liquidity ratios may affect the amount of capital that can be invested/used to earn. Let us say in banks, if we increase the liquidity ratio by 10% the bank would have to reduce lending by that 10% to bridge the gap. which in turn would severely affect the banks earnings.
How will the repo rate affect home loans?
Repo rate is the rate at which the banks can get loans from the country's central bank. If the rate at which banks get loans from the central bank goes down it would automatically affect the rate at which home loans are being granted. Say the repo rate is 6% then the banks may keep a margin of 4% and grant home loans at 10%. If the central bank opts to reduce the repo rate by 2% then the banks would have to pass on this benefit to the end customer. Hence the home loans would be available to the public at 8%.
What happens to unused loan loss reserves?
Unused loan loss reserves represent an overestimation of the bad loans on the books. Ultimately, the unused loan loss reserves would be taken into income
Causes of recession?
One of the major causes of the recession American experienced in 2007 was due to the issues with mortgages. Banks gave loans to people who could not afford the mortgage on the home. Banks would then sell the loan to another bank. People who could not pay the loans would go into foreclosure. The asset value of the home decreased although the repayment of the debt remained the same.
What would happen to the checkable deposits if banks purchase securities using reserves only and are not making loans?
well they will die
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."
How would decreased diffusion across the arachnoid granulations affect the volume of the cerebrospinal fluid in the ventricles?
increase
What would happen if banks decide to keep more of their assets as reserves in order to avoid risking a shortage of required reserve?
The economy would slow dramatically due to a shortage of bank loans.
How would a decrease in blood volume affect both stroke volume and cardiac output?
It's decreased ... unless the rate falls, which is the normal cardiac response.
How does emphysema affect a person's alveoli?
*IT* Doesnt Emphyesma is when alveoli die. how does it affect them... Well it would affect them like it affects every other cell in the body. (decreased O2) but it acually doesnt affect the alveoli it just happens when they die
Are Liquidity Ratios the higher the better?
No. High liquidity ratios may affect the amount of capital that can be invested/used to earn. Let us say in banks, if we increase the liquidity ratio by 10% the bank would have to reduce lending by that 10% to bridge the gap. which in turn would severely affect the banks earnings.
What if Banks decide to keep more of their assets as reserves in order to avoid risking a shortage of the required reserve?
It would NOT shrink the money supply, it would just cause the supply of money to grow at a slower pace. So it would decrease the rate of growth of the money supply.
If the Fed were to impose a slight increase in the required reserves ratio there would be .?
If the Fed were to impose a slight increase in the required reserves ratio, there would be _____.
Does cardiac output affect urine output?
Certainly. Decrease cardiac output would mean a decreased in blood flow to the kidneys, which would lead to reduced filtration, therefore urine output.
How far can hummingbirds fly?
Will they can fly for miles will if the weather right.
How did Swine Flu affect China?
The way in which Swine flu affected china was that the number of people that went china decreased. This is because people were scared that they would get the virus.
