What are a bank''s primary reserves, Financial Management

Assignment Help:

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.

 


Related Discussions:- What are a bank''s primary reserves

Pros and cons of simulation technique, Pros and Cons Simulation techniq...

Pros and Cons Simulation technique allows experimentation with a model of the real life system. Whenever experimenting with the system itself is risky and/or costly, simulation

Compare and contrast sources of conflict, The data on sales performance in ...

The data on sales performance in LS Company has shown a important downward trend over the last year. The Marketing and Sales Department is blaming the Finance Department for the po

Function of the investment decision, Q. Function of the Investment decision...

Q. Function of the Investment decision? Investment decision related of the selection of the fixed assets. the assets can be acquired fall into two board groups i) long terms

Determine the limitations of the traditional approach, Determine the Limita...

Determine the Limitations of the traditional approach Limitations of the traditional approach were not entirely based on treatment or emphasis of different aspects. In other wo

What is profit maximisation criterion, Profit maximisation criterion P...

Profit maximisation criterion Profit maximisation criterion is unsuitable and inappropriate as an operational objective of financing, investment and dividend decisions of a fi

Features of capital budgeting decisions, Q. Features of Capital Budgeting D...

Q. Features of Capital Budgeting Decisions? Features of Capital Budgeting Decisions:- Moneys are invested in long-term assets. Moneys are invested in present times i

Leverage, evaluate the importance of leverage in financial management of a ...

evaluate the importance of leverage in financial management of a small scale company

Historical weights, Can some one tell me the defination of Historical weigh...

Can some one tell me the defination of Historical weights and how we calculate the historical weight?? And given the diffrence between Historical weight Vs Marginal weights??

How could we project exchange rates, How could we project exchange rates in...

How could we project exchange rates in order to be able to forecast exchange differences? If someone knew how to predict exchange rates, they would be a millionaire and would n

Define coefficient of variation often a better risk measure, Why is the coe...

Why is the coefficient of variation often a better risk measure when comparing different projects than the standard deviation? While we want to compare the risk of investments whi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd