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What would happen if banks decide to keep more of their assets as reserves in order to avoid risking a shortage of required reserve?
Wiki User
∙ 7y ago
The economy would slow dramatically due to a shortage of bank loans.
Wiki User
∙ 7y ago
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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.
What is the advantage and the dis advantage of free market economy?
A free enterprise economy is also known as capitalism. There are many advantages to capitalism because capitalism benefits everyone. Capitalism gives everyone the freedom to choose their own jobs and products without government intervention. However, a disadvantage is that companies tend to cut corners risking employees health and safety.
Disadvantages of capitalist society?
Economic, social & cultural polarization between property-owners and others; inefficient use of human capital through hereditary transmission of wealth & status; tendency to cycles of over-expansion and contraction; disproportionate political influence of propertied classes & sectional business interests; tendency to monopoly & homogenization without strong checks on elimination of competition; fuelling of consumer desire through marketing, risking exclusion & alienation of those of lesser means.
How much does it cost to franchise a chic fil a?
Got $5000 laying around? Then you can forget the burgers and throw your money down on a license to operate a Click-Fil-A. But get in line. Chick-Fil-A only gives about 75 of the 10,000 applicants per year the right to operate a franchise, and along with this right comes strict stipulations. Your store will be closed on Sunday to give employees a day off to rest or worship. You will not own the property upon which the store sits, nor will you be allowed to select your location. Investment information is conspicuously missing from the company's website as well as the net, but good credit with a proven business track record will get you considered for a franchise. You will have to surender a whopping 50% of the monthly net profits. If you looking for a low cost franchise and low on cash, maybe Chick-Fil-A is the way to go. As long as you don't mind giving away 50% of the net profits (income after expenses.) You may feel more like a Chick-Fil-A employee, but you are only risking the $5000 franchise fee.
Four principles of individual decision making?
Each decision we make has risks associated with it. Because of these risks, making decisions is often very difficult. As you make decisions, keep in mind four basic principles:Never risk more than you can afford to give.Never risk more than you have.Never risk more than you can get in return.Follow you intuition.Principle 1.Never risking more than you can afford to give refers to more than just financial ventures. Never take any risk that demands more of yourself or your resources than you are willing and able to give. You alone know what you can afford -- in terms of time, energy, emotions, and so on. Think about the decisions you make when you choose your courses at registration. You should not enroll in courses that demand a lot of outside class work if you are not willing to put the time and effort into them outside school.Principle 2.The second principle implies that you are limited in resources. You do not have an unlimited supply of energy, time, space, or money, and you cannot risk more of these resources than you possess. Any decision uses one or more of these resources, but no action should deplete all your resources in any given area.Principle 3.This principle suggests that you view each decision in terms of what it will produce for you. Take a risk only when you can profit from it.Principle 4. This principle simply means that you should feel good about your decision. No one can make decisions for you. As a teenager, you may feel that your parents have forced you to make certain decisions. This is almost never true. Even when you allow another person to decide for you, you are still making a decision -- the decision to make the choices that another person wants you to make.And finally, a decision is a commitment and it should be one you are willing to trust and abide by. Good decisions are those that open up more possibilities for future choices.
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.
What was Henry VIII risking by breaking away from the Roman Catholic Church?
He was risking his relationship with Spain.
Can you wash a squirrel?
yea risking your life
What were the colonist risking by signing the declaration of independents?
freedom
What were the colonist risking by sining the declaration of independence and why?
no people
What were the colonists risking by signing the declaration of independance?
freedom
What does sticking out your neck mean?
risking your a**/going out of your way
What actors and actresses appeared in Risking It All - 2005?
The cast of Risking It All - 2005 includes: Ikuko Bradley as Lisa Melton Morrison as Albert Leni Yssaguirre as Elsie
Why does the U.S celebrate the veterans?
They paid for our freedom by risking their lives.
What risk did the colonist take by writing this.?
They faced Death and risking their lives.
Speculator?
An investor of money for the hope of gain, but also risking loss
What is doodle sacrificing for his brother?
he is risking his life and physical well-being.
