If the banking system has $500 of total reserves and a reserve requirement of 25 percent, the money supply can reach a maximum of $2,000
What is banking ?
- Banking is the business of protecting other people's money.
- Banks lend out this money, generating interest that benefits the bank and its customers.
- A bank is a financial institution authorized to accept deposits and make loans.
- However, other financial services can also be provided.
- A bank is a financial institution authorized to accept deposits and make loans.
- There are following different types of banks as retail banks, commercial banks, and investment banks.
- In many countries, banks are regulated by governments.
- The top five banking services are checking and savings accounts, credit and mortgage services, wealth management, credit and debit card offerings, and overdraft services.
- Under the banking and finance umbrella, the industry includes consumer-centric commercial banks, such as Bank of America, and central banks, government agencies that regulate the industry and control monetary policy.
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