I can contact me over my email.
2006-09-20 22:25:14
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answer #1
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answered by s g 3
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Simply put, the banks couldn't give customers cash. The world would be in a crisis as the entire world's economy depends on a banking system where the demand for actual cash from deposits is lower than the cash reserves of a bank. Banks don't just keep cash in vaults, they loan it out for interest. Good banks make a series of loans with good risk / reward rations and pay interest to deposit holders accordingly. A good Jimmy Stewart type bank right out It's a Wonderful Life will accept deposits, make mortgage loans so people can buy houses, and make a fair profit on the difference between their lending rate and their borrowing rate. Under the worst case situation, the banks would first attempt to raise money by trying to get money from callable loans, where the borrower has to pay on demand. These loans are often made to businesses who are in expansion. They probably don't have the cash to pay them all at once (as they were busy building new factories to produce products), so they are in default, and goes bankrupt. Everybody loses their jobs, so nobody has the money to pay their mortgage, and the bank ends up owning a lot of houses (or cars, office buildings, factories, etc.). Government loans are called. The government CAN pay the bills, but there is a catch. It's called inflation. They run the printing presses 24/7 with higher and higher denominations. A few hundred million dollar bills with Gerald Ford on it pays off one bank. Except it isn't exactly worth what it was since there is so much money being printed those same million dollar bills buys a meal at a kosher deli in New York City. I suppose more realistically, the government would have to step in and do something about the situation. Bank holidays for the most part, until they come to some political compromise. Money would be rationed out of bank to some degree, perhaps $10 / day (or maybe $100 depending on what inflation has done). The governments would back the currancy, in ways similar to the 1930s (varied from FDIC programs in the US to fascist measures taken by Nazi Germany).
2016-03-27 00:07:42
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answer #2
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answered by Anonymous
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Grab the "economics downunder 2' text book
they have everything you are looking for..
2006-09-21 02:01:07
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answer #3
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answered by Anonymous
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And how does this relate to dating? It sounds like it should be in homework help.
2006-09-20 22:26:46
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answer #4
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answered by nursesr4evr 7
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is this a joke
grrrrr.....
10 to12 pages it seems wasting ur time ...
2006-09-20 22:25:46
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answer #5
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answered by imon p 1
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dear you are in the wrong column...
go to right track and search.........
2006-09-20 23:35:53
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answer #6
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answered by manoj r 2
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i dunnoooooo
2006-09-20 22:54:57
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answer #7
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answered by rd22 4
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hmmmmmmmmm no
2006-09-20 22:24:10
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answer #8
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answered by gary_george48 2
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