• Study Resource
  • Explore Categories
    • Arts & Humanities
    • Business
    • Engineering & Technology
    • Foreign Language
    • History
    • Math
    • Science
    • Social Science

    Top subcategories

    • Advanced Math
    • Algebra
    • Basic Math
    • Calculus
    • Geometry
    • Linear Algebra
    • Pre-Algebra
    • Pre-Calculus
    • Statistics And Probability
    • Trigonometry
    • other →

    Top subcategories

    • Astronomy
    • Astrophysics
    • Biology
    • Chemistry
    • Earth Science
    • Environmental Science
    • Health Science
    • Physics
    • other →

    Top subcategories

    • Anthropology
    • Law
    • Political Science
    • Psychology
    • Sociology
    • other →

    Top subcategories

    • Accounting
    • Economics
    • Finance
    • Management
    • other →

    Top subcategories

    • Aerospace Engineering
    • Bioengineering
    • Chemical Engineering
    • Civil Engineering
    • Computer Science
    • Electrical Engineering
    • Industrial Engineering
    • Mechanical Engineering
    • Web Design
    • other →

    Top subcategories

    • Architecture
    • Communications
    • English
    • Gender Studies
    • Music
    • Performing Arts
    • Philosophy
    • Religious Studies
    • Writing
    • other →

    Top subcategories

    • Ancient History
    • European History
    • US History
    • World History
    • other →

    Top subcategories

    • Croatian
    • Czech
    • Finnish
    • Greek
    • Hindi
    • Japanese
    • Korean
    • Persian
    • Swedish
    • Turkish
    • other →
 
Profile Documents Logout
Upload
O`Sullivan Sheffrin Peres 6e
O`Sullivan Sheffrin Peres 6e

... Sunday, March 16, 2008, was not a peaceful day for the Board of Governors. Over the prior week, Bear Stearns had gone into full collapse. The Fed feared that a complete collapse of Bear Stearns would devastate the financial system and cause a global panic, effectively causing a “run” in the financia ...
Money - Cloudfront.net
Money - Cloudfront.net

... Money-History In 1929, the severe economic decline and the stock market crash lead to widespread bank runs (bank panics in which people raced to their banks to withdraw their deposits). The combination of unpaid loans and bank runs resulted in the failure of thousands of banks across the country. A ...
Competition Policy in Banking and Financial Services
Competition Policy in Banking and Financial Services

... Economies of scale and scope It is generally accepted that there exist economies of scale in banking (and other parts of the financial sector), such that average costs fall with increasing output, at least up to moderate size levels. Levels of concentration in banking (except in countries such as t ...
Money Printing and Inflation
Money Printing and Inflation

... economic and price stability has become one of the core objectives of CBSL. Price stability is a situation where there are no wide fluctuations in the general price level in an economy, which leads to achieving sustainable economic growth. Stable prices would not distort economic decisions, thus en ...
Section 1: financial markets and global economic
Section 1: financial markets and global economic

... Sources: Pension Protection Fund and Bank calculations. (a) Zero-coupon spot rate derived from government bond prices. (b) Calculated as the aggregate value of pension fund assets less the value of their liabilities, divided by the total value of liabilities. Calculated on a S179 basis, which is the ...
FAQ - Countercyclical Capital Buffers and Other Systemically
FAQ - Countercyclical Capital Buffers and Other Systemically

... Additional indicators relating to external imbalances, the private-sector debt burden and the strength of bank balance sheets, do not currently point to emerging imbalances or vulnerabilities. ...
Money functions as:
Money functions as:

... C) more important than open-market operations. D) less important than open-market operations in implementing monetary policy. Answer: D If the Federal Reserve authorities were attempting to reduce demand-pull inflation, the proper policies would be to: A) sell government securities, raise reserve re ...
Loose monetary policy and excessive credit and liquidity risk
Loose monetary policy and excessive credit and liquidity risk

... agency problems) and a firm credit-risk measure (2) Accounting fully for both observed and unobserved time-varying bank and firm heterogeneity by saturating the specifications with time*bank and time*firm fixed effects (at a quarterly or monthly frequency), and when possible, also controlling for u ...
macyellow3 - Harper College
macyellow3 - Harper College

... 1. The amount by which government expenditures exceed revenues during a particular year is the: A. public debt. B. budget deficit. C. full-employment. D. GDP gap. 2. Since 2002, the United States has had: A. large Federal budget surpluses. B. large Federal budget deficits. C. modest trade surpluses. ...
DOCX - World bank documents
DOCX - World bank documents

... Trustee”) of the Special Climate Change Fund (the “SCCF”). Defined terms used in this Notice and not defined herein shall have the meanings given to them in the Agreement. 2. Pursuant to paragraph 9 of the Standard Provisions, we are pleased to inform you that the Donor agrees to make an additional ...
Banking: Civil War to WWI
Banking: Civil War to WWI

... Development and Competition with State Banks The National Banking system grew rapidly at first (Table 1). Much of the increase came at the expense of the state-chartered banking systems, which contracted over the same period, largely because they were no longer able to issue notes. The expansion of ...
Current global imbalances and the Keynes Plan
Current global imbalances and the Keynes Plan

... monetary economy country J needs K’s money, and hence K’s demand for goods “made in J”, in order to stimulate its growth. K, in turn, becomes dependent on the goods made in J for satisfying the needs of its population. • Because country K specialises as the locomotive of the world economy, the rest ...
29 - Mersin
29 - Mersin

... • Money serves three functions in an economy: as a medium of exchange, a unit of account, and a store of value. • Commodity money is money that has intrinsic value. • Fiat money is money without intrinsic value. ...
Thanks for applying for a Citibank account - UChicago-CSSA
Thanks for applying for a Citibank account - UChicago-CSSA

... Thank you for choosing Citibank for your banking needs!!! Citibank offers all the University of Chicago students a checking and savings account with no minimum balance and no monthly service fees. We are the only bank on campus, as well as the only bank to offer international students a credit card ...
Chap29 - MalloryKearney
Chap29 - MalloryKearney

... • Money serves three functions in an economy: as a medium of exchange, a unit of account, and a store of value. • Commodity money is money that has intrinsic value. • Fiat money is money without intrinsic value. ...
SUBA- MBITA JOINT 565/2 BUSINESS STUDIES PAPER 2
SUBA- MBITA JOINT 565/2 BUSINESS STUDIES PAPER 2

This PDF is a selection from a published volume from... Economic Research Volume Title: NBER International Seminar on Macroeconom
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER International Seminar on Macroeconom

... and December of 2008, the federal funds rate often traded below the deposit rate. That is, some market participants were willing to lend funds into the market for a lower rate than they could receive on deposits at the Federal Reserve. The reason behind this phenomenon is that not every reserve hold ...
MONETARY POLICY AND THE DEBATE ABOUT MONETARY
MONETARY POLICY AND THE DEBATE ABOUT MONETARY

... than most government agencies. • The Fed does not rely on Congress for appropriations. • Its governors serve 14 year terms and cannot be reappointed. ...
How banks work and why are they fragile - Re
How banks work and why are they fragile - Re

... When banks convert short term deposits into long term loans, they expose themselves to the danger that many of their depositors may want their money back at the same time. But the bank, which is unable to call in loans it has made for long maturities, may not be able to pay. This maturity mismatch b ...
Assessment pdf
Assessment pdf

... ♦ A bank is a for-profit company that is in the business of taking deposits, lending and providing other financial services. There are different kinds of banks, including national banks, state-chartered banks, savings and loan associations and savings banks (Banking Basics, 2002). Most banks and sav ...
Asset Valuation and Residual Risks to the Nigerian Financial
Asset Valuation and Residual Risks to the Nigerian Financial

The Reserve Bank, private sector banks and the creation of money
The Reserve Bank, private sector banks and the creation of money

... If, say, 10 percent of deposits are typically withdrawn for cash payments weekly, and this amount is re-deposited with the bank, then Bank A only needs to hold $100 in cash at hand to support likely withdrawals on its total deposits of $1,000. (In practice, Bank A will not be certain about the 10 pe ...
Exam 11th Febraury 2005: Solution
Exam 11th Febraury 2005: Solution

... economy, where the 1000€ of reserves generates 10000€ of money, the money multiplier is 10. The money multiplier is the reciprocal of the reserve ratio. If R is the reserve ratio and is equal to 1/10, then the money multiplier is 10. The tools that the monetary authorities can use to control the mon ...
practice exam3
practice exam3

... 51) Mishkin concludes that four basic lessons regarding monetary policy can be drawn from chapter 25. These lessons include: A) It is dangerous always to associate the easing or tightening of monetary policy with a fall or a rise in short-term interest rates. B) Monetary policy can be highly effecti ...
CHAPTER 15
CHAPTER 15

... 2. The main argument for Fed independence is that monetary policy is too important to be determined by politicians. Because elections occur frequently, politicians may be mainly concerned with the short-run benefits rather than the long-run costs of their economic policies. Supporters of the Fed’s i ...
< 1 ... 168 169 170 171 172 173 174 175 176 ... 243 >

Fractional-reserve banking

Fractional-reserve banking is the practice whereby a bank accepts deposits, and holds reserves that are a fraction of the amount of its deposit liabilities. Reserves are held at the bank as currency, or as deposits in the bank's accounts at the central bank. Fractional-reserve banking is the current form of banking practiced in most countries worldwide.Fractional-reserve banking allows banks to act as financial intermediaries between borrowers and savers, and to provide longer-term loans to borrowers while providing immediate liquidity to depositors (providing the function of maturity transformation). However, a bank can experience a bank run if depositors wish to withdraw more funds than the reserves held by the bank. To mitigate the risks of bank runs and systemic crises (when problems are extreme and widespread), governments of most countries regulate and oversee commercial banks, provide deposit insurance and act as lender of last resort to commercial banks.Because bank deposits are usually considered money in their own right, and because banks hold reserves that are less than their deposit liabilities, fractional-reserve banking permits the money supply to grow beyond the amount of the underlying reserves of base money originally created by the central bank. In most countries, the central bank (or other monetary authority) regulates bank credit creation, imposing reserve requirements and capital adequacy ratios. This can limit the amount of money creation that occurs in the commercial banking system, and helps to ensure that banks are solvent and have enough funds to meet demand for withdrawals. However, rather than directly controlling the money supply, central banks usually pursue an interest rate target to control inflation and bank issuance of credit.
  • studyres.com © 2026
  • DMCA
  • Privacy
  • Terms
  • Report