Economics Questions

Re: Fractional Reserve Minimum

banned — Thu, 25 Sep 2008 11:02:54 GMT

eliotn:
I should start a bank with no reserves!

There have to be at least some reserves in a normal deposit bank, else depositors will be unable to withdraw anything.

eliotn:

It seems like the reserve requirement is 0% if the bank does not have more then 9.3 million on its net transaction accounts, 3% between 9.3 million and 43.9 million, and 10% for more than 43.9 million.

For non-personal time deposits and eurocurrency liabilities, it is again 0%, can someone find out what these mean?

nonpersonal time deposits are sums of money deposited by corporations and large investment firms or something

They're factored into the m2 iirc. They're time deposits so they're not immediately withdrawable.

Eurocurrencies are foreign money deposits and are also factored into the m2.

Re: Fractional Reserve Minimum

Gene — Thu, 25 Sep 2008 02:39:06 GMT

Thanks.

Re: Fractional Reserve Minimum

eliotn — Thu, 25 Sep 2008 02:27:49 GMT

It seems like the reserve requirement is 0% if the bank does not have more then 9.3 million on its net transaction accounts, 3% between 9.3 million and 43.9 million, and 10% for more than 43.9 million.

For non-personal time deposits and eurocurrency liabilities, it is again 0%, can someone find out what these mean?

I should start a bank with no reserves!

Re: Fractional Reserve Minimum

eliotn — Thu, 25 Sep 2008 02:20:00 GMT

The Federal Reserve makes no effort to hide its reserve requirements. They can be found here.

Re: Fractional Reserve Minimum

liberty student — Thu, 25 Sep 2008 02:19:01 GMT

You could call the FED tomorrow.

I believe the Fractional Reserve Banking entry on Wikipedia has some information about reserve ratios.

Don't be scared. Keep learning and telling others. Learn to teach and inform. You can make a difference.

Fractional Reserve Minimum

Gene — Thu, 25 Sep 2008 02:05:00 GMT

Does anybody know what the Reserve minimum is? How dynamic is it? Where can I find this information on the internet? I am new to the community. I just finished "A case againest the fed" and "What has the goverment done with our money" Frankly I am scared. I have told some coworkers about the book and they just say I guess he can see the future but nobody is taking this serious. Thanks