What is the meaning of transfer of money

Q: How fast Can someone get a bank loan?

A: A bank takes into account several things when considering whether or not to extend a loan to…

Q: could you show how to determine the bond's present value without a calculator?

A: When interest rate rises to 4%: Given, Face value= future value= $1,000 Yield to maturity= 4% Time=…

Q: What is the cheapest loan?

A: A loan is the lending of money by an individual or a group to another individual or a firm, with an…

Q: In contrast to revolving credit, installment credit loans allow a borrower to do which of the…

A: A credit loan is a form of loan given to a person or an organization with the expectation that the…

Q: How it is possible to prevent bank failure?

A: Bank failure could be prevented in many ways. Banks should keep track of monetary policy and…

Q: Money flow

A: Money flow is determined by calculating the daily volume by the average of the high, medium, and…

Q: Define what is meant by (pure) credit rationing. Save Answer

A: Rationing is a source of artificial control on the demand and supply of the goods and services.

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.