0
Why can't a depositors in a bank withdraw all their money at once?
Wiki User
∙ 9y ago
Because a bank isn't able to come up with it. Banks are not just places to store money. Oh no! When you put $100 in the bank, the bank turns around and lends it to someone else. When that person pays it back, with interest, the bank takes his repayment and loans it to someone else, and so on ad infinitum. The long-term effect is that the bank makes money, its depositors make money and the people who were loaned the money either used it to make more money or to improve their lives somehow. The short-term effect is the money is out doing something else besides taking up space in the bank's vault. Since they don't have the money on hand (because a grocery store owner borrowed it to buy a truckload of canned goods, for instance), they can't just return it to the depositors on a moment's notice.
Lorine Batz
Add your answer:
Earn +20 pts
Why cant all depositors in a bank withdraw all of their money at once?
Such a thing is known as a run on the bank. When account holders pay in money, that money is not just simply put into the bank's safe, and is always there to be instantly taken out again. The money is lent out, and is expected to increase in value due to interest paid in by the borrower. Though, while on paper, the money is there, in fact it has been lent on to someone else.
Can you withdraw money if you have a negative balance?
Some ATM's will let you withdraw money even when you are overdrawn. however if you go to a teller then you will not be able to withdraw any money.
What does it mean if you bank says - such n amount but i cant go over on my account i dont have an overdraft?
most banks have a 24 hours withdraw limit. for example in my bank i cant withdraw more that $500 in a 24 hour period, so is likely that you either have reached your limit or there is an error on the account
What are the conditons for Cash withdrawals from Own personal Bank Account?
Depends on the bank and the account conditions usually you cant draw more than you have in the account, although some places just charge you an overdraft charge and allow it as long as its under some small limit Also, usually, you can't withdraw more than some amount of money per day from an ATM (like several hundred... you have to go in person to do that)
How do I regain my money and good credit when my bank took all the money because of a writ against someone with the same name?
A bank cant take your money just because you have the same name as someone else they have to show proof it is you I would talk to the county attorney Exactly right, call the county attorney
Why cant all depositors in a bank withdraw all of their money at once?
Such a thing is known as a run on the bank. When account holders pay in money, that money is not just simply put into the bank's safe, and is always there to be instantly taken out again. The money is lent out, and is expected to increase in value due to interest paid in by the borrower. Though, while on paper, the money is there, in fact it has been lent on to someone else.
Can you withdraw money if you have a negative balance?
Some ATM's will let you withdraw money even when you are overdrawn. however if you go to a teller then you will not be able to withdraw any money.
Withdraw cash in Lausanne Switzerland from Bank of the Philippine Islands Savings account?
I cannot withdraw, I am in Lausanne right now, I tried my BPI bank in atm with cirrus logo, but I cant withdraw. It says transaction is impossible in this card, contact your bank..
How do you get money out of the bank in World of Warcraft?
You cant put money into your own personal bank. You might be talking about the Guild bank. Some guilds your in wont let you take money or items out. But if you are able to there should be a button on the lower right of the menu that would pop up if you click your guild bank it will say Withdraw if you cant take money out it should be grayed out. The guild bank is in Stormwind near the Auction house should be a sign above the place its at.
What does it mean if you bank says - such n amount but i cant go over on my account i dont have an overdraft?
most banks have a 24 hours withdraw limit. for example in my bank i cant withdraw more that $500 in a 24 hour period, so is likely that you either have reached your limit or there is an error on the account
Can you get a statement after depositing money to someone in a bank your not banking with?
no u can not what kinda question is that you have to get a statment from your own bank and you cant deposit money to a different bank
What has a mouth but cant eat moves but has no legs and has a bank but cant put money in it?
RIVER
What is the difference between a normal savings account and nre account?
In normal savings account, you deposit Indian money (rupee) and you can withdraw it in the same indian money. In nre account you can only deposit foreign currency and you withdraw indian currency. you cant deposit indian money in this account
Sample letter requesting release of money from PF account?
You cant write letters to get money from PF account. There are forms that need to be filled and procedures to be followed to withdraw money from PF account.
I Have been trying for 4 months to cancel my evony account However they still continue to withdraw money from my bank account what can I do?
That is a bit odd, if you dont buy stuff on evony using your money then they shouldn't witdraw money from your account, speak to your bank and/or the evony staff then say why is it happening. The likely thing it's that someone else is using your credit card details/Anyway, you cant delete your account, just abandon it
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.
Why do we need a bank?
We need a bank because without it we cant make loans and if we cant make loans we cant buy off land and property and things we need and once we buy these things and pay back the loans the bank gets more money wich goes to the government
