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What might happen if the government did not insure bank deposits?
Wiki User
∙ 11y ago
people would lose their savings if their banks went out of business
Wiki User
∙ 11y ago
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Why does the government ensure all deposits of money into bank accounts?
Simple for consumer confidence. we saw it in the great depression people swarmed to get there money out.. A bank does not hold all accounts full, they loan money. so people get scared some might say well its insured... like running to the store in a food crisis.
How do banks expand money?
They leverage deposits. Banks can loan out more money than is on deposit at the bank. For example, if a person deposits $100, the bank might write loans for $180 against that deposit. There is risk in doing this. Should the bank experience many defaulting loans, it may find itself insolvent. The Federal Reserve dictates how heavily the banks can leverage their deposits in order to keep bank failures to a minimum.
Do certificates of deposits accept additional deposits?
No. A Certificate of Deposit carries a fixed value. The value is decided at the time of opening a CD and once done; its base value does not change. Though the CD can earn an interest and the final maturity value might change, the amount that was initially deposited does not and will not change. If you wish to make fresh deposits into a CD, it cannot be done. You can only open a fresh CD for the new amount that you wish to add into your existing CD.
What might happen if a lender gives you more credit than you are able to repay?
i don’t know
How banks mobilize deposits?
As you might already know, the main business for banks is accepting deposits and granting loans. The more the loans the banks disburse, the more profit they make. Also, banks do not have a lot of their own money to give as loans. They depend on customer deposits to generate funds for granting loans to other customers. So a deposit mobilization scheme would encourage customers to deposit more cash with the bank and this money in turn will be used by the bank to disburse more loans and generate additional revenue for themselves. They do that by organizing drives and road shows in prominent areas of the city
How might a government insure domestic tranquility?
A government can insure domestic tranquility by promoting social cohesion through policies that address societal inequalities, providing economic opportunities for all citizens, and ensuring that law enforcement is fair and effective in maintaining public safety. Open dialogue and collaboration with community leaders and organizations are also key in preventing conflicts and promoting peaceful coexistence.
What are two things you might find deposits of on the seacoast?
you might find deposits of salt and calcium
What might happen to the soil and the local government land and vegetation when a tsunami occurs?
dond
What might happen if there was no government?
Chaos, large masses need to be regulated in some way.
What did hays believe might happen when a government becomes corrupt?
Hays believed that when a government becomes corrupt, it risks losing the trust and support of its people. This can lead to instability, erosion of the rule of law, and a breakdown of social order.
What might be found in areas where rivers enter oceans?
placer deposits
What might happen if the government's power were in the hands of one person or group?
nothing would be voted right and would not be agreed on so the right answer might not be chosen :) hope this helps!
What might happen if the government powers were in the hands of just one person or group?
nothing would be voted right and would not be agreed on so the right answer might not be chosen :) hope this helps!
Do you need to insure your car while in the care of a garage?
yes because people might break in
When was Something Might Happen created?
Something Might Happen was created in 2003.
What might be found deep in a natural cave?
Ground water, mineral deposits, and stalactites
What could happen if governments neglect peoples right?
if the government neglects peoples rights their could be crisis, the people might even decide to go on strike and stop working until the government work on their demands.....................
