Question

 Why do banks borrow money from each other?

Answer The Federal Reserve requires banks to keep a certain supply of cash to cover deposits and financial transactions. If reserves fall short of requirements, banks borrow money from each other to remai... Read More »
http://www.answerbag.com/q_view/2028332

Top Q&A For: Why do banks borrow money from each other

How does the U.S. borrow money from other countries?

The United States has run a budget deficit for all but three years since 1950. To run, our government must borrow money. Some of this money comes from overseas.BackgroundThe U.S. borrows money from... Read More »
http://www.answerbag.com/q_view/1970706

Does the United States borrow money from other countries?

The United States borrows money from other countries. The two countries that lend the United States the most money are Japan and China. The United States borrows money from other countries to finan... Read More »
http://www.answerbag.com/q_view/2012348

Why do banks loan money to other banks?

Banks loan money to other banks to maximize returns on excess funds and to comply with reserve requirements imposed by the government. Since banks try to maximize the return on all deposits, lendin... Read More »
http://www.answerbag.com/q_view/2030257

What Happens to the Money Supply If Banks Don't Loan or Borrowers Don't Borrow?

In the United States, the Federal Reserve Board ultimately controls how much money is circulating in the economy by controlling how much money banks have access to and how expensive it is to borrow... Read More »
http://www.ehow.com/info_8492832_happens-loan-borrowers-dont-borrow.html


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