What Does Reserves Mean When Buying A House? Reserves are savings balances that will be there after you close on your home purchase. Lenders like to see emergency funds that can pay your housing expenses even if your income stops. Reserves are measured in months — the number of months of housing costs you’d be
What Is Primary And Secondary Reserve? Primary reserves include a bank’s vault cash and checkable deposits held with other banks or any other funds that are accessible immediately to meet demands for liquidity made against the bank. Secondary reserves consist of assets paying some interest but their principal feature is ready marketability. What is meant
How Does Excess Reserves Affect Money Multiplier? The size of the multiplier depends on the percentage of deposits that banks are required to hold as reserves. When the reserve requirement decreases, the money supply reserve multiplier increases and vice versa. What happens when excess reserves increase? Financial firms that carry excess reserves have an extra