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| View Poll Results: who will win another title sooner? | |||
| Kobe Bryant |
   
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4 | 11.76% |
| Dwayne Wade |
  
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28 | 82.35% |
| Neither will win another |
  
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2 | 5.88% |
| Voters: 34. You may not vote on this poll | |||
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#11
03-07-2007, 12:11 PM
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Re: How do one dollar bills stay in the economy?
The Federal Reserve controls the supply of money. You deposit money into the bank, the bank loans out that money to a borrower. That borrower then buys something, and that new person deposits it in the bank, which then gets reloaned...etc. It's called the Multiple Deposit Expansion.
I don't know your financial situation, but you'll realize that the more money you have, the less you actually see it. It turns mainly into numbers on account with banks and other financial institutions. If you have $1,000,000, you aren't going to keep that money under your mattress - you'd be stupid if you did. So you deposit that $1 million into the bank, which then gets loaned out. Banks also keep reserves so that if you wanted to withdraw money, the bank actually had some money to give you. When you keep an account on the bank, and you withdraw, you aren't getting the money back that you deposited. You are getting money back that someone else deposited that is sitting in the reserves while that depositer doesn't need it immediately. 
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#15
03-07-2007, 12:24 PM
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Re: How do one dollar bills stay in the economy?
[ QUOTE ]
The Federal Reserve controls the supply of money. You deposit money into the bank, the bank loans out that money to a borrower. That borrower then buys something, and that new person deposits it in the bank, which then gets reloaned...etc. It's called the Multiple Deposit Expansion. I don't know your financial situation, but you'll realize that the more money you have, the less you actually see it. It turns mainly into numbers on account with banks and other financial institutions. If you have $1,000,000, you aren't going to keep that money under your mattress - you'd be stupid if you did. So you deposit that $1 million into the bank, which then gets loaned out. Banks also keep reserves so that if you wanted to withdraw money, the bank actually had some money to give you. When you keep an account on the bank, and you withdraw, you aren't getting the money back that you deposited. You are getting money back that someone else deposited that is sitting in the reserves while that depositer doesn't need it immediately. [/ QUOTE ] At least if your going to make fun of me, address the question i asked don't just spew [censored]
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#16
03-07-2007, 12:25 PM
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Re: How do one dollar bills stay in the economy?
DW,
Most dollar bills stay in circulation for awhile. Let's say there is a dollar bill in the cash register of some store. I buy something there and get that dollar bill as part of my change. I carry it around for a while until I buy something else, when it goes in a cash register at a different store. And the cycle begins again.
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#18
03-07-2007, 12:30 PM
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Re: How do one dollar bills stay in the economy?
The gov't just photocopies the original $1 bill whenever we get low.
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#19
03-07-2007, 12:30 PM
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Re: How do one dollar bills stay in the economy?
[ QUOTE ]
Money can be used to purchase goods and services. [/ QUOTE ] lol, good one
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#20
03-07-2007, 12:30 PM
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Re: How do one dollar bills stay in the economy?
[ QUOTE ]
DW, Most dollar bills stay in circulation for awhile. Let's say there is a dollar bill in the cash register of some store. I buy something there and get that dollar bill as part of my change. I carry it around for a while until I buy something else, when it goes in a cash register at a different store. And the cycle begins again. [/ QUOTE ] Ok, now lets say it eventually reaches a bank(i think this is a reasonable assumption given a long enough time period), how does it reach consumers again. I have heard convience stores, what else? i would think the rate fast food places turn in dollar bills >rate convience stores gets them from banks.
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