Why do banks hold cash assets? 1.Banks supply coin and currency to meet customers'regular transactions needs. 2.Regulatory agencies mandate legal reserve requirements that can only be met by holding qualifying cash assets. 3.Banks serve as a clearinghouse for the nation's check payment system. 4.Banks use cash balances to purchase services from correspondent banks. 碰制卧价贸易大考
Why do banks hold cash Why do banks hold cash assets? assets? 1. Banks supply coin and currency to meet customers' regular transactions needs. 2. Regulatory agencies mandate legal reserve requirements that can only be met by holding qualifying cash assets. 3. Banks serve as a clearinghouse for the nation's check payment system. 4. Banks use cash balances to purchase services from correspondent banks
Liquid assets A liquid asset is one that can be easily and quickly converted into cash with minimum loss. Contrary to popular notion "cash assets"do not generally satisfy a bank's liquidity needs. 猫的资5+号
Liquid assets Liquid assets A liquid asset is one that can be easily and quickly converted into cash with minimum loss. Contrary to popular notion "cash assets" do not generally satisfy a bank's liquidity needs
Liquid Assets 1.Cash and due from banks in excess of requirements, 2.Federal funds sold and reverse repurchase agreements, 3.Short-term Treasury and agency obligations, 4.High quality short-term corporate and municipal securities,and 5.Some government-guaranteed loans that can be readily sold. 麓封强的黄香+孝
Liquid Assets Liquid Assets 1. Cash and due from banks in excess of requirements, 2. Federal funds sold and reverse repurchase agreements, 3. Short-term Treasury and agency obligations, 4. High quality short-term corporate and municipal securities, and 5. Some government-guaranteed loans that can be readily sold
Reserve balances at the Federal Reserve Bank Banks hold deposits at the Federal Reserve in part because the Federal Reserve imposes legal reserve requirements and deposit balances qualify as legal reserves. Banks also hold deposits to help process deposit inflows and outflows caused by check clearings,maturing time deposits and securities,wire transfers,and other transactions. 猫的资6+孝
Reserve balances at the Reserve balances at the Federal Reserve Bank Federal Reserve Bank Banks hold deposits at the Federal Reserve in part because the Federal Reserve imposes legal reserve requirements and deposit balances qualify as legal reserves. Banks also hold deposits to help process deposit inflows and outflows caused by check clearings, maturing time deposits and securities, wire transfers, and other transactions
Required reserves and monetary policy The purpose of required reserves is to enable the federal reserve to control the nation's money supply. There are basically three distinct monetary policy tools: 1.open market operations, 2.changes in the discount rate,and 3.changes in the required reserve ratio. 麓的贫香小手
Required reserves and Required reserves and monetary policy monetary policy The purpose of required reserves is to enable the Federal Reserve to control the nation’s money supply. There are basically three distinct monetary policy tools: 1. open market operations, 2. changes in the discount rate, and 3. changes in the required reserve ratio