0
Why would most businesses see holding high levels of reserves as a waste of money?
Wiki User
∙ 10y ago
Becuase by the holding of high level reserve fund are not utilized in productive work which comes income and gain into the business. Its also loss of interest on fund that not utilized but hold in fund. Reserve are required for only increasing sefty of the business due to poor condition.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
Why do fluctuating price levels cause individuals and businesses to change their purchasing decisions?
The real value of money falls as price levels drop
Can you move a CD to a checking account to pretend the condo reserve amounts are larger legally?
Your state law may regulate 'separate accounts' for reserves, in which case, moving money in and out of reserves to 'give the appearance' of higher levels of cash being available, would be illegal. Reserves are one key measurement of financial health for associations.
What happens when a bank has no reserves?
reserves is the money that a bank holds aside just in case they run out, they'll have money to back them up.When a bank runs out of reserves they can either get loans from the government or file bankruptcy.
Do bullion reserves match money in circulation?
In no why.
Why a country will not print much money to pay all government debts?
Because the government is only basing their money to their dollar reserves and gold reserves which is an international medium of exchange.If the government produces more money than the value of their reserves,it is called inflation.
What is inorganic money?
The printing of money in the absence of the precious metal reserves which the money represents.
What happen to cash money?
The money will be absorbed by the Federal Reserve into its cash reserves
How do banks create money with fractional reserves?
because
Where does the money in central bank reserves comes from?
The Treasury
What is give money its value?
Money, especially paper money, is backed by the gold reserves of the issuing bank
How interest rate affect business?
Interest rates affect the value of money. Businesses depend on money. So when money has a higher value, businesses are happy. When money has a lower value, businesses are not so happy.
How can interest rate affect business?
Interest rates affect the value of money. Businesses depend on money. So when money has a higher value, businesses are happy. When money has a lower value, businesses are not so happy.
