Explain about the monetary role of banks, Finance Basics

Explain about the monetary role of banks.

The Monetary Role of Banks:

• A bank is a financial intermediary.

• Bank reserves are the currency banks hold within their vaults and including their deposits at the Federal Reserve.

• The reserve ratio is the division of bank deposits which a bank holds like reserves.

Posted Date: 9/6/2013 7:45:43 AM | Location : United States

Related Discussions:- Explain about the monetary role of banks, Assignment Help, Ask Question on Explain about the monetary role of banks, Get Answer, Expert's Help, Explain about the monetary role of banks Discussions

Write discussion on Explain about the monetary role of banks
Your posts are moderated
Related Questions
risk structure of interest rates 1. Default risk 2. Liquidity 3. Income tax consideration 4. Expectations theory


Dividend Basis Valuation Ownership of shares in entities - The owner to obtain a cash flow consisting of future dividends and the value of a share must correspond to the recen

An industrial engineer proposed the purchase of a RFID Fixed Asset Tracking System for the company's warehouse and weave rooms.  The engineer though that the system would provide a

Characteristics of Investment - Venture Capitalists Venture capitalists, will just invest in a company whether there is a reasonable chance such the company will be successful

Factors that Influence the Cost of Finance 1. Terms of reference - if short term, the cost is generally low and vice versa. 2. Economic conditions prevailing - If a com

Venture Capital Venture capital is a form of investment in new small risky enterprises utilized to get them started via specialists called venture capitalists. Venture capital

Market Model - Methods of Computing Cost of Capital This model is utilized to establish the percentage cost of ordinary share capital cost of equity (K e ). If an investor is

You are taking an investment in the common stock of Crisp's Cookware. The stock is expected to pay a dividend of $2.00 a share at the end of the year (D1=2.00). The stock has a bet

Setting of Optimal Cash Balance Cash is often identified like a non-earning asset since holding cash quite than a revenue-generating asset includes a cost in form of foregone