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What else can I help you with?
What happen to cash money?
The money will be absorbed by the Federal Reserve into its cash reserves
When you borrow money from a bank where does that money come from?
When you borrow money from a bank they pull cash from the bank's reserves. This collection of cash is the net cash reserves within the bank or its network from depositors in the system.
How does a bond sale by the fed affect the money supply?
When the Federal Reserve buys a bond, the amount of money outside the private sector increases. This is money that exists in the forms of cash, coins, and bank reserves.
What will happen with TARP money when it's paid back?
The money will be absorbed by the Federal Reserve into its cash reserves.
What is high power money?
High-powered money refers to the narrowest definition of the money supply, consisting of physical cash (coins and currency) in circulation and commercial bank reserves held at the central bank. It is also known as the monetary base and is important because changes in high-powered money can influence the broader money supply and the economy.
What are three limitations on the money expansion process?
1. Borrowers do something with the money they borrow 2. People do not withdraw cash. 3. Banks do not let reserves sit idle To the extent that people prefer to hold cash, the actual money multiplier will be smaller than the simple money multiplier because cash withdrawals reduce reserves in the banking system. Reduced reserves give banks less ability to make loans or buy bonds.
What are cash reserves?
Cash reserves often refers to the amount of money kept on hand for short term spending or in case of an emergency. It can also refer to a short-term liquid investment with a low return rate.
What is cash-flow and what affects it?
Cash flow is money coming in and money going out. If you arent getting any cash to flow then you dont have a cash flow. Say you had a great job making a lot of money.... you had money coming in because you were working.... well your money was also going out because you were buying things you wanted. Then you lost your great job. Your cash flow stopped.... you now have to budget your money. You still have a cash flow as long as you are spending that money. Once you run out of money you no longer have a cash flow.
What are excess reserves?
They are reserves of cash more than the required amounts.
Will the money supply increase if people deposit their cash into a demand deposit account?
yes
What is cash and currency not needed?
Excess Reserves
Are cash reserves an asset?
Yes, cash reserves are considered an asset. They represent liquid funds that a company or individual can easily access and use for various purposes, such as covering expenses, investing, or managing emergencies. In financial statements, cash reserves are typically classified as current assets because they can be quickly converted into cash or used in transactions.
