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Hubbert's Peak says that at some point new reserves will no longer offset global demand and prices will skyrocket Reserves of what?
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∙ 15y ago
Oil
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∙ 15y ago
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Why do commercial bank lend out the excess reserves?
They dont loan out their excess reserves. They only have excess reserves because they dont have loan demand from qualified borrowers and the marginal return from an average loan is greater than the interest paid on the excess reserves. IE they have to receive a marginal return of X amount above .25% they now receive on their excess reserves from a borrower SO 1. They have to loan demand 2. Qualified borrower 3. Net marginal return of higher than the amount of interest they receive on their reserves.
What has the author Lisa McRory written?
Lisa McRory has written: 'On-demand publishing and electronic reserves'
What has the author Demos Panayi Hadjiyanis written?
Demos Panayi Hadjiyanis has written: 'The demand for international reserves'
Are there any significant petroleum reserves in Greece?
Reserves = 10 million barrels. See attached link. Production is insufficient to meet demand, so I would not characterize them as significant to the economy of Greece. Now if I owned them, it would be a different story!
Define modern banking system?
The bulk of all money transactions today involve the transfer of bank deposits. Depository institutions, which we normally call banks, are at the very center of our monetary system. Thus a basic knowledge of the banking system is essential to an understanding of how money works. Bank Deposits and Reserves The monetary base is created by the Fed when it buys securities for its own portfolio. Bank deposits themselves are not base money, rather they are claims on base money. A bank must hold reserves of base money in order to meet its depositors' cash withdrawals and to cover the checks written against their accounts. Reserves comprise a bank's vault cash and what it holds on deposit at the Fed, known as Fed funds. The Fed requires banks to maintain reserves of at least 10% of their demand deposits, averaged over successive 14-day periods. The Movement of Bank Reserves When a depositor writes a check against his account, his bank must surrender that amount in reserves to the payee's bank for the check to clear. Reserves are constantly moving from one bank to another as checks are written and cleared. At the end of the day, some banks will be short of reserves and others long. Banks redistribute reserves among themselves by trading in the Fed funds market. Those long on reserves will normally lend to those short. The annualized interest rate on interbank loans is known as the Fed funds rate, and varies with supply and demand. The reserve requirement applies only to the bank's demand deposits, not its term or savings deposits. Thus when a bank depositor converts funds in a demand deposit into a term or savings deposit, he frees up the reserves that were held against the demand deposit. The bank can then use those reserves in several ways. For example, it can hold them to back further lending, buy interest-earning Treasury securities, or lend them to other banks in the Fed funds market.
Define Banking system?
The bulk of all money transactions today involve the transfer of bank deposits. Depository institutions, which we normally call banks, are at the very center of our monetary system. Thus a basic knowledge of the banking system is essential to an understanding of how money works. Bank Deposits and Reserves The monetary base is created by the Fed when it buys securities for its own portfolio. Bank deposits themselves are not base money, rather they are claims on base money. A bank must hold reserves of base money in order to meet its depositors' cash withdrawals and to cover the checks written against their accounts. Reserves comprise a bank's vault cash and what it holds on deposit at the Fed, known as Fed funds. The Fed requires banks to maintain reserves of at least 10% of their demand deposits, averaged over successive 14-day periods. The Movement of Bank Reserves When a depositor writes a check against his account, his bank must surrender that amount in reserves to the payee's bank for the check to clear. Reserves are constantly moving from one bank to another as checks are written and cleared. At the end of the day, some banks will be short of reserves and others long. Banks redistribute reserves among themselves by trading in the Fed funds market. Those long on reserves will normally lend to those short. The annualized interest rate on interbank loans is known as the Fed funds rate, and varies with supply and demand. The reserve requirement applies only to the bank's demand deposits, not its term or savings deposits. Thus when a bank depositor converts funds in a demand deposit into a term or savings deposit, he frees up the reserves that were held against the demand deposit. The bank can then use those reserves in several ways. For example, it can hold them to back further lending, buy interest-earning Treasury securities, or lend them to other banks in the Fed funds market.
How can handicraft industry help increase the country's dollar reserves?
The handicraft industry can help increase a country's dollar reserves by exporting its products to foreign markets. By tapping into global demand and showcasing the uniqueness of handcrafted goods, the industry can generate foreign exchange earnings. Additionally, promoting handicraft tourism can attract international visitors who spend money, further boosting the country's dollar reserves.
When will copper run out as a natural resource?
It is difficult to predict an exact timeline for when copper will run out as a natural resource. However, current estimates suggest that there are sufficient copper reserves to meet global demand for several decades, depending on consumption rates and technological advancements in mining and recycling. Additionally, the development of alternative materials and technologies may lessen the dependency on copper in the future.
What are primary and secondary reserves?
Primary ReservesPrimary reserves consist of cash on hand in the bank and deposits owed to it by other banks. These are also called the legal reserves. From this cash on hand tellers are able to meet customer demands for withdrawals, exchanges, and loans. Any excess reserves may be invested in larger banks in the form of the loans; in the United States these are called federal funds.Total cash required to support the operations of a bank, legal or mandatory reserve requirements, and uncollected checks. Primary reserves cannot be loaned or invested, but may be used in a liquidity crisis caused by sudden and heavy cash withdrawals by bank's depositors.Secondary ReservesAssets invested in short-term marketable securities, usually Treasury bills and short-term government securities. legal-reservekept in a Federal Reserve Bank don't earn interest, but secondary reserves are a source of supplemental liquidity. These earn interest and can be used to adjust a bank's reserve position. If loan demand is slow, deposit funds often are invested in short-term securities that are easily converted to cash. Secondary reserves are not listed as a separate balance sheet item.Securities purchased by a bank for investment purposes are known as secondary reserves. In the United States, much of this investment is in municipals-bonds and notes issued by local or state governments. Banks also buy bills, notes, and bonds issued by the United States Treasury and securities issued by other federal agencies. All such securities are low-risk investments. …Priti Upadhyay( GZB) ( priti.up@gmail.com)
Why is gas imported from Mexico?
Gas is not imported from Mexico. What is imported is crude oil, which in turn is refined and converted into oil products such as kerosene, asphalt and gas. The demand for gas is huge, and the reserves located throughout the United States are not enough to cover such demand; therefore, oil has to be imported from countries such as Mexico.
How do you change federal funds rate?
The federal funds rate is the interest rate banks charge on loans in the federal funds market. The federal funds rate is not set administratively by the Fed. Instead, the rate is determined by the supply of reserves relative to the demand for them.
How did cotton farming change the south?
It strengthened the Southern economy and even made some Southern planterns rich,but it also made the demand for slave labor skyrocket.
