Unsimple Money is what people use to buy things and "services" that is, to have things done for am - and what ay take for selling air own things or services what ay do for others. There are many kinds of money in the world. Most countries have air own kind of money, such as the United States dollar or the Japanese yen.
Regulatory Changes in Reserve Requirements and Indexation of the Low Reserve Tranche and the Reserve Requirement Exemption The following list covers regulatory changes in reserve requirements and indexation of the low reserve tranche and the reserve requirement exemption beginning December 1,and their effects on required reserves.
Effective with the reserve maintenance period beginning July 30,the required reserve system was shifted from CRR to new lagged reserve requirements LRR with reserve computation periods for weekly reporters starting thirty days before the corresponding reserve maintenance periods. Under the new LRR regime, the lag in counting vault cash toward required reserves was lengthened from sixteen days to thirty days for institutions reporting weekly on the FR In other words, the average vault cash held during a reserve computation period would be applied toward required reserves in its corresponding reserve maintenance period.
Effective November 12,the lag in counting vault cash toward required reserves was shortened from four weeks to two weeks for institutions reporting weekly on the FR, i.
Effective April 2,the 12 percent required reserve ratio against net transaction deposits above the low reserve tranche level was reduced to 10 percent.
Effective with reserve maintenance period beginning January 17,the 3 percent reserve requirement on nontransaction liabilities was reduced to zero for FR quarterly reporters. Effective Term used for the non convertible paper money 24,money market deposit accounts MMDAwhich had previously been subject to full reserve requirements, were made subject to the transitional phase-in program of the Monetary Control Act.
In addition, the order of application of the exemption applied to reservable liabilities was changed. Effective February 2,Regulation D was amended as follows for institutions reporting weekly on the FR Effective July 24,the 5 percent marginal reserve requirement on managed liabilities and the 2 percent supplementary reserve requirement against large time deposits were removed.
Effective May 29,the marginal reserve requirement was reduced from 10 percent to 5 percent and the base upon which the marginal reserve requirement was calculated was raised.
Effective March 12,the 8 percent marginal reserve requirement was raised to 10 percent. In addition, the base upon which the marginal reserve requirement was calculated was reduced.
Effective October 11,a marginal reserve requirement of 8 percent was imposed on "managed liabilities" of member banks, Edge Act corporations, and U. On October 25, required reserves and reserves held by Edge Act Corporations were included in member bank reserves.
Previously reserves held by these institutions were recorded as "other deposits" by Federal Reserve Banks. Effective November 30,the 10 percent minimum requirement on the domestic deposits of Edges was removed but Edges continued to be subject to the same reserve requirements as member banks.
Effective October 30,the reserve requirement against member bank time deposits with an original maturity of four years or more was reduced from 3 percent to 1 percent. Effective May 22,the reserve requirement against foreign borrowings of member banks, primarily Eurodollars, was reduced from 8 percent to 4 percent.
In addition, the 3 percent marginal reserve requirement on large certificates of deposit with an initial maturity of less than four months was removed. Effective December 27,the marginal reserve requirement against certain time deposits was reduced from 11 percent to 8 percent.
Effective October 4,the marginal reserve requirement against certain time deposits was increased from 8 percent to 11 percent. Effective July 12,reserve requirements were imposed against finance bills. Effective June 21,the Board amended its Regulation D to establish a marginal reserve requirement of 8 percent against certain time deposits and to subject to the 8 percent reserve requirement certain deposits exempt from the rate limitations of the Board's Regulation Q.
In addition, reserves against certain foreign branch deposits were reduced from 10 percent to 8 percent. These changes had little effect on required reserves. Effective November 9,Regulations D and J were revised to 1 adopt a system of reserve requirements against demand deposits of all member banks based on the amount of such deposits held by a member bank, and 2 to require banks--member and nonmember--to pay cash items presented by a Federal Reserve Bank on the day of presentation in funds available to the Reserve Bank on that day.
Effective January 7,the reserve requirement on certain foreign borrowings, primarily Eurodollars, by member banks, and the sale of assets to their foreign branches was raised from 10 percent to 20 percent. This action had little effect on required reserves.
At the same time, a 5 percent reserve requirement was imposed against funds obtained by member banks through the issuance of commercial paper by their affiliates.
Effective October 16, a 10 percent marginal reserve requirement was established on certain foreign borrowings, primarily Eurodollars, by member banks and on the sale of assets to their foreign branches. Effective September 12,Regulation D was amended to: Effective November 1,the reserve requirement of country banks against their time deposits was reduced from 5 percent to 4 percent.
Effective October 25,the reserve requirement of reserve city banks against their time deposits was reduced from 5 percent to 4 percent. Effective July 28,the central reserve city classification was eliminated and the former central reserve city banks were reclassified as reserve city banks.
Effective November 24,the reserve requirement of country banks against their net demand deposits was increased from 11 percent to 12 percent. Effective November 24,member banks were allowed to count all vault cash as legal reserves. Effective January 1,the reserve computation and maintenance periods for country banks were changed from semi-monthly to biweekly.
The reserve computation and maintenance periods for central reserve city banks and reserve city banks continued to be one week; and all banks, including country banks, continued to compute and hold reserves contemporaneously.
In addition, beginning with the period ending January 13,the reserve computation and maintenance periods for all banks were made to end on Wednesday.Convertible Paper Money Paper money which the holder has the right to present at any time for redemption at a parity in metallic money.
This is distinguished from inconvertible paper money, which. Convertible Paper Money: For a long time, paper money remained a convertible paper money.
Under this, money is convertible into standard coins made of gold or silver. Under it the paper currency issued by the Central Bank was fully backed by the reserves of gold and silver of equal value kept by it.
The convertible security financing arrangements might also include caps or other provisions to limit dilution (the reduction in earnings per share and proportional ownership that occurs when, for example, holders of convertible securities convert those securities into common stock).
Effective April 24, , money market deposit accounts (MMDA), which had previously been subject to full reserve requirements, were made subject to the transitional phase-in .
This is something we see in the first historical episodes in which non-convertible paper 4 Apart from earlier episodes in China, the first example we have notice of circulating inconvertible paper money was in Sweden from to (see The Economist ).
The history of money. STUDY. PLAY. barter. This is either metallic or non-metallic and could be used for purposes other than as a medium of exchange.
Fiat money. In-convertible paper money in support of which there is no reserve or specie. Standard money.