answersLogoWhite

0

Simple for consumer confidence. we saw it in the great depression people swarmed to get there money out.. A bank does not hold all accounts full, they loan money. so people get scared some might say well its insured... like running to the store in a food crisis.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

What are deposits?

sea


What does near money include?

deposits in savings accounts and money market mutual funds


Which of the following does near money include?

deposits in savings accounts and money market mutual funds.


What keeps you bank deposites safe?

The Central Banks of the countries ensure that the money deposited in the banks in their country are safe. For Ex: Reserve Bank of India for India and Federal Deposits Insurance Corporation for USA ensure that customers do not lose out on the money they deposit in their bank accounts and that banks pay back customers every rupee/dollar they put into their accounts.


What assets is easiest to make transactions with an individual retirement accounts. B checking deposits. C money market mutual funds. D time deposits.?

Chequing deposits.


What does the M2 measure of money equal?

M2 adds savings accounts, small time deposits at banks, and retail money market funds.


What best explains why the money supply increases when the fed buys treasury bonds?

When the Fed buys Treasury bonds, it increases the amount of deposits in people's bank accounts. The purchase of bonds increases the amount of deposits in people's bank accounts, which enables banks to loan more money


Savings deposits are not part of M1 because?

Savings deposits are not part of M1 because M1 includes only the most liquid forms of money, such as cash, checking accounts, and demand deposits, which can be quickly accessed and used for transactions. Savings deposits, while still considered part of the money supply, are less liquid as they typically require more time to withdraw or transfer funds. Therefore, they are classified under M2, which encompasses M1 plus savings accounts, time deposits, and other near-money assets.


What are included in the two categories of the money supply?

The money supply is typically categorized into two main components: M1 and M2. M1 includes the most liquid forms of money, such as cash, coins, and demand deposits (checking accounts). M2 encompasses M1 along with less liquid forms, such as savings accounts, time deposits, and money market accounts. Together, these categories reflect the total amount of money available in an economy for transactions and savings.


What is included in M2 but not in M1?

M2 includes M1 components (currency, demand deposits) along with savings accounts, time deposits, and non-institutional money market funds.


How many different types of bank accounts do banks offer?

There are four major types of accounts that banks normally offer. It may vary bank to bank what their individual accounts are. The major types of accounts are checking accounts, savings accounts, money market accounts, and time deposits.


What best explains why the money supply is increased when the Fed buys Treasury bonds?

When the Fed buys Treasury bonds, it increases the amount of deposits in people's bank accounts.The purchase of bonds increases the amount of deposits in people's bank accounts, which enables banks to loan more money