Banking System Control, Capital Allocation, And Financial system Efficiency
A financial market is a market during which individuals trade financial securities and derivatives at low transaction costs Among the securities embody stocks and bonds , and valuable metals. Banks can’t lend out all the deposits they collect, or they would not have funds to pay out to depositors. Subsequently, they preserve primary and secondary reserves. Main reserves are cash, deposits due from different banks, and the reserves required by the Federal Reserve System. Secondary reserves are securities banks buy, which may be offered to meet short-term cash needs. These securities are usually government bonds. Federal law units necessities for...
Read More