There are some people who may wish to know a little about what banks are all about L.J. Collier Shirt , especially when these financial institutions have had to swim in rather troubled waters just lately.
Banks are here to make money. It is hard to manage without them, and it is hard for them to manage without us. On the face of it, this looks like a marriage made in heaven. However, since all marriages are based on absolute trust and hate turbulent situations, and because these two features seem to be coming into play Frank Clark Jersey , it is not surprising that this is causing a certain amount of concern to depositors.
Basically, a client places money into his account. The bank will lend that money to other clients and make a profit on the deal. If the client banked say $10000, the bank can lend $90000 out because they must maintain a 10 per cent cash reserve ratio. In other countries, the cash reserve ratio requirement can be higher or lower. Any country can decide to alter the cash reserve ratio if needs be.
There is nothing to stop a bank to set aside more than the required minimum, meaning having excess reserves. It is not particularly rewarding for banks to do this Jarran Reed Jersey , since they get no interest on that money, albeit they can channel it out on short and overnight terms to banks which need to maintain their minimum reserve ratio.
Getting back to that $90000 the bank can lend out, and let us say grant overdrafts but creating of course a liability factor, as the bank has to pay out whenever the various borrowers issue their cheques.
The position of the bank is that it has a total cash sum of $10000 received. However, it has lent out deposits of totalling $90000. Add this together and you get a figure of $100000 representing total assets which are the $90000 in overdrafts plus the original $10000 cash received Germain Ifedi Jersey , which of course includes the required 10% reserve.
What took place is that the bank granted loans worth $90000 giving birth to money which did not exist before, based on the $10000 received in cash and locked in the safe.
People do not put in all the money on the same day, and they do not take out all the money on the same day. Cash in form of bank reserves is there to meet some withdrawals that may possibly be required. Banks have been managing quite well with small cash reserves in their safe, because they hold a number of liquid assets which they can sell for instant money. It is better for them to earn more money out of these liquid assets than having cash. Bankers are clever enough to know what kind of mixture of investments they should hold not to be caught with their pants down.
As well as lending money both short and long term, banks place investments in other areas. For instance Shaquill Griffin Jersey , apart from the liquid assets, they can purchase long term government bonds and other securities. However, without cash reserves it is not possible to give birth to additional money unless breaking the rules.
Of course banking is far more intricate than that, but at least one can grasp some basics, and understand why Ethan Pocic Jersey , when a spanner is thrown into the works due to whatever reason, hiccups can follow. Do you want to know how you can drive around using plain tap water as fuel and laugh at rising gas costs, while reducing your auto's emissions and helping to prevent more global warming?
That was the headline I read and my initial gut reaction was "Oh no... Not another save money on your gasoline scam".
I thought, here was someone trying to make an easy buck because of how absolutely terrible the price of gasoline and diesel had become.
When you have record oil prices and a situation where you and everyone you know are being negatively affected by the outrageous cost of fuel it only made sense that some new gadget to save you money gasoline would hit the market...
So is this latest scam the government is going to shut down? Let's find out.
Over the course of my adult life, like you Will Dissly Jersey , I'm sure; I've come across every imaginable device, system or chemical additive that claimed to be that miracle gas booster that would save us 50% on our gasoline or diesel costs.
Do you remember the magnets on your fuel line? Supposedly they separate gasoline molecules, or something to that effect, which allowed the fuel to burn cleaner and more efficiently.
Well, if these magnets did work Rashaad Penny Jersey , the results were so insubstantial that you couldn't measure the change. Not worth the cost of admission in other words.
I've prided myself as being an optimist. So as an optimist I have always kept my ear to the wind about technology that would help me on my fuel costs and help the environment as well.
However, for some reason this water for fuel was something I heard about well over a decade ago and it really didn't peak my interest this time around, but I kept hearing so much about this new water for fuel set-up that I had to at least take a look...
I'm an optimist remember, and even though I'd already written it off as just another scam I needed to verify it was really a scam, but I was sorta knocked out of my boots by what I found and you will be to...
Here is some solid information that we all need to know about.
For one Kam Chancellor Jersey , people from every part of the USA are testifying how using water for gas really works for them. Another thing is that over a decade ago I did my research and knew Hydrogen or HHO was indeed a viable fuel source so I knew that part of the concept was solid.
So the question is, "Is water for fuel, or more precisely is Hydrogen for fuel a scam?"