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Credit is considered a liquidity medium because it provides individuals and businesses with immediate access to funds that can be used to meet financial obligations or invest in opportunities without having to rely solely on their available cash reserves. By extending credit, financial institutions and lenders help to facilitate economic activity and stimulate growth by allowing borrowers to access funds when they are needed, thus improving liquidity in the overall economy.
What else can I help you with?
What is the singular of medium?
Medium is already singular. The plural is mediums.
A ray of light travelling from medium A to medium B bends away from the Norman Which medium is optically denser?
The ray of light bends away from the normal when traveling from a less optically dense medium (medium A) to a more optically dense medium (medium B). Therefore, medium B is optically denser in this scenario.
When waves travel through a medium they carry the medium with them is this true or false?
False. Waves do not carry the medium with them as they travel through it. Instead, they transfer energy through the medium without permanently displacing the particles of the medium.
What are waves that require a medium to travel through?
Medium is of two type One is material medium and other one is non-material Material medium are air medium, water medium etc Non-material medium is vacuum or free space If material medium is essential for the propagation of the wave then that wave is named as mechanical wave. Example: sound waves If such a material medium is not a must then the wave is said to be Electro magentic wave. Example: Light waves.
When a wave moves from a dense medium to a less dense medium most of the wave energy is?
Most of the wave energy is reflected back into the denser medium when a wave moves from a dense medium to a less dense medium.
What term means the ability to turn assets into cash quickly or having access to credit?
liquidity
What mechanism is used by commercial banks for providing credit to government?
statutory liquidity ratio
What are the factor does not affect credit creation power of commercial bank?
Statutory liquidity ratio
What is the effect of credit policy on performance profitability and liquidity?
The credit policy generally demands payment. Working class professionals will generate more money in order to sort out credit requirements.
How might a statement of cash flows be used?
You might use it to apply for credit (a loan).
Which term means the ability to turn assets into cash quickly or having access to credit?
Liquidity :P BB
What is 6 letter word for debt medium?
credit
What is ment by CRR?
CRR MEANS CASH RESERVE RATIO IS A DECLINE IN THE LIQUIDITY OF A ECONOMY THIS IS CREDIT RESERVE RATION IN WHICH A COMMERCIAL BANK HAVE MAINTAIN A PERCANGE OF BALANCE WITH RBI CRR MEANS CASH RESERVE RATIO IS A DECLINE IN THE LIQUIDITY OF A ECONOMY
How do you cure credit crunch?
By easing the monetary policies. By reducing cash reserve ratio, statutory liquidity ratio and repo rate, the amount of cash in circulation in the economy can be increased. This can help cure credit crunch...
What are the five problems of today?
1. Low liquidity in the economy (Credit Crunch) 2. Unemployment 3. GDP is coming down (I have added 3)
What is credit deposit ratio?
The credit deposit ratio (CDR) is a financial metric that measures the proportion of a bank's total loans (credit) to its total deposits. It indicates how effectively a bank is utilizing its deposits to generate loans, reflecting its lending practices and liquidity. A higher CDR suggests aggressive lending, while a lower CDR may indicate more conservative lending or higher liquidity. This ratio is crucial for assessing a bank's financial health and risk management.
Factors affecting firm liquidity?
Firm liquidity is influenced by several key factors, including cash flow management, inventory levels, and accounts receivable turnover. Effective cash flow management ensures that a company can meet its short-term obligations, while excessive inventory can tie up resources and reduce liquidity. Additionally, the efficiency in collecting receivables impacts the availability of cash, as slower collection can lead to liquidity challenges. External factors such as market conditions and access to credit also play a significant role in a firm's liquidity position.
