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Consumer reserve refers to the surplus amount of goods or resources that consumers can draw upon when their immediate needs are not met. It encompasses the savings or stockpiles of products that individuals or households maintain for future use, particularly during times of scarcity or economic uncertainty. This concept highlights the importance of consumer preparedness and can influence market demand and pricing.

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2mo ago

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What will increased consumer spending?

Consumer spending is called consumption, which is a component of Aggregate Demand in our economy. In monetary policy, the Federal Reserve can buy treasuries, lower the reserve requirement, and lower the discount rate which will increase consumption. In fiscal policy, the government can cut taxes to increase consumer spending.


To what agency does the Consumer Financial Protection Bureau or CFPB report?

The Consumer Financial Protection Bureau (CFPB) is an independent unit located within and funded by the United States Federal Reserve. It is also currently affiliated with the U.S. Treasury Department. Its main purpose, among others, is to promote transparency and fairness for consumers regarding mortgages, credit cards, student loans, and other consumer financial services.


What consumer behavior is the Federal Reserve Board trying to encourage when it implements a loose monetary policy?

decreased saving and increased spending


Which economist believe governmental interference has destroyed true consumer sovereignty?

Capitalism and its followers believe the fault lies within the Federal Reserve.


What is the total consumer debt in America?

The Federal Reserve statistics combined with other agency data totaled consumer debt from credit card, mortgages and student loads at $11.68 trillion. This figure is from data compiled in April 2014.


If the federal reserve decreases the reserve rate from 5 to 2?

If the Federal Reserve decreases the reserve requirement from 5% to 2%, banks will be required to hold less cash in reserve, allowing them to lend more of their deposits. This increase in lending can stimulate economic activity by encouraging consumer spending and business investments. Additionally, lower reserve requirements can lead to increased money supply, potentially influencing interest rates and inflation. Overall, this policy aims to promote economic growth during periods of sluggish economic performance.


What is the total consumer debt in America equals?

The Federal Reserve statistics combined with other agency data totaled consumer debt from credit card, mortgages and student loads at $11.68 trillion. This figure is from data compiled in April 2014.


What has the author John Martin Chapman written?

John Martin Chapman has written: 'The consumer finance industry' -- subject(s): Consumer credit 'Commercial banks and consumer instalment credit' -- subject(s): Banks and banking, Credit, Installment plan, Loans 'Finance companies' -- subject(s): Commercial finance companies 'Licensed lending in New York' -- subject(s): Personal Loans 'Fiscal functions of the Federal reserve banks' -- subject(s): Federal Reserve banks


Why do interest rates fall during a recession?

The Federal Reserve lowers interest rates during a recession in hopes to spark economic activity (aka consumer spending).


What is the function of the Federal Deposit Insurance Corporation?

It examines state-chartered banks that are not members of the Federal Reserve System for safety, soundness, and compliance with consumer protection laws.


Is capital reserve a free reserve?

capital reserve is not a free reserve


Is revaluation reserve a capital reserve?

Yes...revaluation reserve is a part of capital reserve.