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What is the federal funds market?

From day to day, the amount of reserves a bank wants to hold may change as its deposits and transactions change. When a bank needs additional reserves on a short-term basis, it can borrow them from other banks that happen to have more reserves than they need. These loans take place in a private financial market called the federal funds market.


Who wants to go to Princeton?

Carlton Banks


How the slr and crr influence the Indian business?

RBI lends to the commercial banks through its discount window to help the banks meet depositor's demands and reserve requirements. The interest rate the RBI charges the banks for this purpose is called bank rate. If the RBI wants to increase the liquidity and money supply in the market, it will decrease the bank rate and if it wants to reduce the liquidity and money supply in the system, it will increase the bank rate. As of 5 May, 2011 the bank rate was 6%.Cash Reserve Ratio (CRR): Every commercial bank has to keep certain minimum cash reserves with RBI. RBI can vary this rate between 3% and 15%. RBI uses this tool to increase or decrease the reserve requirement depending on whether it wants to affect a decrease or an increase in the money supply. An increase in Cash Reserve Ratio (CRR) will make it mandatory on the part of the banks to hold a large proportion of their deposits in the form of deposits with the RBI. This will reduce the size of their deposits and they will lend less. This will in turn decrease the money supply. The current rate is 6%.Statutory Liquidity Ratio (SLR): Apart from the CRR, banks are required to maintain liquid assets in the form of gold, cash and approved securities. Higher liquidity ratio forces commercial banks to maintain a larger proportion of their resources in liquid form and thus reduces their capacity to grant loans and advances, thus it is an anti-inflationary impact. A higher liquidity ratio diverts the bank funds from loans and advances to investment in government and approved securities.


If the fed wants to increase the money supply it should?

If the Fed wants to increase the money supply, they should buy the government bonds. The actions that can be used by the Fed to increase the money supplied is called the monetary policy.


Why do you have to do study island?

Because your school wants you to increase your knowledge


Who wants to increase oil and gas production?

Mitt Romney


Why America doesn't use their own oil reserves?

because the government is greedy and wants America to pay for their mistakes while the laugh in our faces


What are the reasons for privatization of banks?

Banks have always been private. The government only wants control of them as of late. Banks did receive public insurance because of the run during the depression, but they have always been private, never a need to privatize.


Are all checks either returned to the people who wrote them or kept on file at banks?

No, banks no longer return checks to customers. If a customer wants the check, they can request that the bank send it to them.


Who wants to increase US oil and gas production?

Mitt Romney


Does the heart rate increase when the body wants to a cooler temperature?

Certainly


When the Feds want to increase the money supply it?

The reserve requirement is 0.5. The Fed wants to increase the money supply by $1000.