Why are checking accounts not an important source of funds for commercial banks in the United States?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Money Banking and Financial Markets

ISBN: 978-0078021749

4th edition

Authors: Stephen Cecchetti, Kermit Schoenholtz

See More Books

Question Posted: Oct 02, 2014 08:00 AM

See More Questions

Why are deposits a more important source of funds for small banks than for large banks? Why are deposits considered a more stable source of funds for small banks than for large banks?
Why are suppliers considered an important source of financing?
For many people, breakfast cereal is an important source of fiber in their diets. Cereals also contain potassium, a mineral shown to be associated with maintaining a healthy blood pressure. An...
Describe what is meant by the term balanced in the term balanced scorecard method.
Consider the single-input, single-output system is described by y(t) = Cx(t) where (a) Determine the value of K resulting in a zero steady-state tracking error when u(t) is a unit step input for t...
High Desert Pottery works makes a variety of pottery products that it sells to retailers. The company uses a job-order costing system in which departmental predetermined overhead rates are used to...
A $60 \mathrm{mph}$ wind blows against a football stadium scoreboard that is $36 \mathrm{ft}$ tall, $80 \mathrm{ft}$ wide, and $8 \mathrm{ft}$ thick (parallel to the wind). Estimate the wind...
The following information concerns production in the Forging Department for November. All direct materials are placed into the process at the beginning of production, and conversion costs are...
1. (6 points) What was the Civilian Labor Force in October 2023? What was the unemployment rate in October 2023? How many people not now in the labor force would have to enter the labor force...
Lily Tucker (single) owns and operates a bike shop as a sole proprietorship. In 2020, she sells the following long-term assets used in her business: Asset Sales Price Cost Accumulated Depreciation...
Banks hold more liquid assets than do most businesses. Explain why.
Suppose a bank faces a gap of -20 between its interest-sensitive assets and its interest-sensitive liabilities. What would happen to bank profits if interest rates were to fall by 1 percentage point?...
Identify the one resource whose daily supply is fixed for each person. How could we improve the effectiveness with which we consume this resource?
As problems 5.18 and 5.19 reflect, the air temperature in the test section of conventional hypersonic wind tunnels is low. In reality, air liquefies at a temperature of about $50 \mathrm{~K}$...
A wave traveling along a rope is described by \[y(x, t)=(2.0 \mathrm{~mm}) \sin \left[\left(4.0 \mathrm{~m}^{-1} ight) x-\left(3.0 \mathrm{~s}^{-1} ight) t ight]\] (a) Calculate the amplitude,...
Describe the pressure of particles at points in a sound wave where the gas is (a) compressed at maximum, (b) minimally compressed.
Starting with Eq. (6.13), which is in conservation form, derive Eq. (6.28), which is in non-conservation form. Equation 6.13: \(\frac{\partial(ho w)}{\partial t}+abla \cdot(ho w...
While on a sailboat, you notice that the boat is moving up and down fifteen times periodically every minute. Find the period of oscillation and the distance between two adjacent wave crests if the...
Write the integral as a sum of integrals without absolute values and evaluate. 3 J-2 |x|dx
Distinguish between the work performed by public accountants and the work performed by accountants in commerce and industry and in not-for-profit organisations.
Only about half the states include most admissions to entertainment events as part of the state sales tax; the other half include only a few or no admissions in the tax base. Explain why the sale of...
According to the liquidity premium theory, if the yield on both one-and two-year bonds are the same, would you expect the one-year yield in one-years time to be higher, lower or the same? Explain...
To raise wealth and stimulate private spending, suppose the central bank lowers interest rates, making stock market investment relatively attractive. Which stock market index would you monitor to...
The financial press tends to become excited when the Dow Jones Industrial Average rises or falls sharply. After a particularly steep rise or fall, newspapers may publish tables ranking the days...
The Government of Canada Zero Coupon Yield curve is shown below. What does the shape over the first three years tell you about the market's consensus expectation for future spot interest rates?...
Cash Flow. College students often have little income and many expenses. Does this reduce or increase the importance of completing a cash-flow statement on a monthly basis? Why?
A car costs $27,000 in the U.S. The same car costs 32,130 Euros. Based on these data points, please answer the below (2 decimal places). (show work along with answer) What should EUR/USD be in real...

Why are checking accounts not an important source of funds for commercial banks in the United States?

Question:

Step by Step Answer:

Checkable deposits make up only 10 percent of banks total liabilities As a resul...View the full answer

Money Banking and Financial Markets

Students also viewed these Banking questions