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Nina [5.8K]
3 years ago
15

What do banks do with most of their customers deposits

Business
1 answer:
MissTica3 years ago
7 0

Usually deposits go to making loans

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Whats the difference between stock and stockholder?
Charra [1.4K]

To delve into the underlying meaning of the terms, "stockholder" technically means the holder of stock, which can be construed as inventory, rather than shares. Conversely, "shareholder" means the holder of a share, which can only mean an equity share in a business. Thus, if you want to be picky, "shareholder" may be the more technically accurate term, since it only refers to company ownership.

8 0
3 years ago
The ability to perform more than one complex encoding tasks simultaneously demonstrates the importance of
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The ability to perform more than one complex encoding tasks simultaneously demonstrates the importance of automatic processing. Automatic processing does not require attention to be paid and deliberately to be put in effort. Something that is done <span>without giving it any thought is automatic processing. </span>
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3 years ago
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What is the process of applying safeguards to avoid a negative impact? risk mitigation risk transfer risk analysis risk avoidanc
natima [27]

Answer: risk avoidance

Explanation:

Risk avoidance is simply defined as the process by which safeguards are applied in order to avoid a negative impact. It should be noted that a risk avoidance strategy helps to eliminate all risk and organizations apply safeguards to both potential threats and vulnerabilities.

Risk avoidance helps to remove hazards, and the activities that'll have a negative impact on the business.

6 0
4 years ago
F banks kept 100 percent of deposits on hand as reserves, the reserve requirement ratio:
Paraphin [41]

Answer:

Option (B) is correct.

Option (D) is correct.

Explanation:

If banks kept 100 percent of deposits on hand as reserves, then this will indicate that all the deposited amount would be saved as reserves. Therefore, the reserve requirement ratio is 100% here which means that:

Reserve ratio = 100%

                      = 100 ÷ 100

                      = 1

and the money multiplier = 1 ÷ reserve requirement ratio

                                          = 1 ÷ 1

                                          = 1

Banks would not be able create new money by giving loans because the reserve requirement ratio is 100%.

7 0
3 years ago
Using your resources wisely means using the smallest amount of resources to produce the greatest amount of output.
Levart [38]

Answer:

True

Explanation:

Using your resources wisely means using the smallest amount of resources to produce the greatest amount of output. In terms of the economic efficiency , when all goods and factors of production in an economy are distributed or allocated to their most valuable uses and waste is eliminated or minimized. Economic efficiency is when every scarce resource in an economy is used and distributed among producers and consumers in a way that produces the most economic output and benefit to consumers. Economic efficiency can involve efficient production decisions within firms and industries, efficient consumption decisions by individual consumers, and efficient distribution of consumer and producer goods across individual consumers and firms.  Effective management is described a use staff, time and resources wisely to minimize unnecessary cost to the organization.

7 0
3 years ago
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