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What else can I help you with?
Why there is a need for cash reserve ratio?
The purpose of having a CRR is to satisfy withdrawal demands and also as a shield to protect the depositors money atleast to a certain extent.
How is a paper dollar put into circulation after it is printed?
Federal Reserve Banks distributes new currency for the Department of the Treasury, which produces it. Depository institutions buy currency from Federal Reserve Banks when they need it to meet customer demand, and they deposit cash at the Fed when they have more than they need to meet customer demand. Most medium-sized and large-sized banks maintain reserve accounts at one of the 12 regional Federal Reserve Banks, and they pay for the cash they get from the Federal Reserve by having those accounts debited. Some smaller banks maintain their required reserves at larger, "correspondent," banks. The smaller banks get cash through the correspondent banks, which charge a fee for the service. The larger banks get currency from the Federal Reserve and pass it on to the smaller banks.
Liquidity ratio in mutual funds?
Liquidity Ratio in a Mutual Fund house is the amount of money they maintain as cash or near cash instruments.For example, a MF house has an AUM (Asset Under Mgmt) of $100 million and they maintain a liquidity ratio of 10% it means they would invest $90 million in securities and retain the $10 million as cash.Need to maintain Liquidity:The main reason to maintain the liquidity (cash reserves) is to meet the redemption requirements of customers. Not all customers would want to remain invested always. As the fund house has the responsibility to honor the redemption requests, they need to maintain cash reserves using which they would pay those customers.
What is the journal entry to purchase asset from general reserve?
General reserves need to be converted into cash first by issuing new shares to share holders and after that cash can be used to purchase assets.
What should be Journal entry for purchase of building from general reserve account?
First of all general reserves need to be converted into cash by issuing new shares and then that cash can be used to purchase building.
How would one go about paying for airfare using direct cash?
In order to pay for an airline ticket in cash, you would need to go directly to the ticket counter at the airport, or reserve the tickets through a travel agent.
How can you control the liquidity in system with CRR?
With Cash Reserve Ratio the Commercial Banks can keep money in Central Bank. So that amount of money keeps intact coz the commercial bank do not retain that with themselves. So if in a case the commercial banks need money they can easily opt for the aforesaid invested money with central bank.
What are the goals of cash management for a business?
The goals of cash management should be applied to every business. Cash management ensures that a business can manage funds and maintain their operational need, business obligations, and profit goals.
Why cant we just tax the federal reserve for living in America?
For the same reason you cannot lift yourself into the air by pulling on your boots. The Federal Reserve does not "live in America". It is a system that manages the flow of cash within the country. It is the bank that is used by banks. You need to go study the Federal Reserve Bank.
Where do banks go when they need money?
They have multiple options.Borrow from a neighboring bank. Banks usually lend one another money to meet their short term cash requirementsBorrow from the country's central bank. Ex: Reserve Bank of India in India or the Federal Reserve in USA etcGo on Deposit Mobilization drives - to attract more customers to deposit cash in their account
What is slr of reserve bank of India?
Statutory Liquidity Ratio or SLR as it is more commonly called is the amount of liquid cash every bank has to maintain in order to meet the daily customer withdrawal demands. Whatever money we deposit with banks, they lend it out to other customers to make a profit out of it. Imagine you depositing a few lakh rupees out of your retirement corpus with a bank and visiting the bank to withdraw some money to get a gift for your grandson and the bank telling you that since the loan re-payments were not received on time, you cant take money out of your account right now? That would be bad wouldn't it? This is exactly why banks have to maintain a SLR so that they don't have to refuse withdrawal transactions from deposit customers. Its your money and you should be able to withdraw it anytime you want. Reserve bank does not have a SLR only the member banks need to maintain a SLR.
How can you unlock a wallpaper in Temple Run?
In order to unlock a wallpaper in Temple Run you will need to have built up a cash reserve of at least 5000 coins. You can then go to the store and buy the wallpaper for that amount.
