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What are a bank's primary reserves? When the Fed sets reserve requirements, what is its primary goal?
Vault deposits and cash in the bank's account at the Fed are used to persuade these reserve requirements they are called as primary reserves. These primary reserves are those non interest earning assets held by monetary institutions.
The Federal Reserve needs all commercial banks to keep a least amount of reserves on hand to meet the withdrawal demands of its depositors and to pay other obligations as they come due. Many would dispute, conversely, that the reserve requirement is put more with financial policy in mind than to make sure that banks meet their depositors' withdrawal requests.
Issuer's Considerations Cash Flows: Issuers may consider the period for which the funds are required and try to spread the borrowings in a way to minimize the costs. Generally,
Accounting Framework The rules and conventions of accounting are generally referred to as the conceptual framework of accounting. As already elaborates in the previous sectio
a) The combined two-firm concentration ratio of Motorola (approximately 17.5%) and Nokia (35%) is around 52.5% of the market. b) Up to 2 marks for correct definition: Market sha
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Describe the value maximisation criterion In applying the value maximisation criterion, term value is used in terms of worth to the owners, which is, ordinary shareholders. Cap
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