How awesome is banking and finance?

Friday, March 5, 2010

How to Invest Your Money











What is a banks required reserve

Required Reserve - a percentage of all deposits made to a bank that must be kept on hand, in the United States the required reserve is 10%.

A scary thing to note is that the required reserve amount each bank must have is not distributed equally across all of the individual bank's branches. If a run on the banks were to occur and you went to withdraw from your bank, they will not have your cash available for you to take.
Bank - is a financial institution that takes deposits and uses the investment to give out loans in order to make a profit.

A video on Warren Buffett

http://www.youtube.com/watch?v=YtnbC887zbc