2007-02-20 00:23:28 · 3 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
___you mean petty cash management, cash deposited or to bewithdrawn from the bank, or by cash you mean the money--are you by any chance or planning to steal
2007-02-27 00:41:59 · answer #1 · answered by xxsanxx 5 · 0⤊ 0⤋
I worked in a bank and the bank does 10 to 20 percent for cash flow but the rest is loaned to other banks for say over the weekend. so say a bank has 20 million to loan out for 20% for 3/360 is a goodeal for that bank.
That is how banks make a lot of money. If there is a holiday they make more money.
2007-02-27 23:43:09 · answer #2 · answered by dbuitt22 6 · 0⤊ 0⤋
Money is an account balance. Banks do not maintain cash on hand equal to the amount of money deposited. Rather, they keep about 10% of deposited funds in cash. The amount required varies from day to day and week to week. Cash management is keeping enough cash on hand to handle the bank's cash business plus the cash reserve dictated by the bank's policy. Cash on hand plus cash deposited minus cash paid out equals net cash on hand. To ensure that the net cash on hand meets the bank's needs, the cash manager must estimate with fair accuracy the amount of cash to be deposited as well as the future cash demand. Cash is ordered from the federal reserve and excess cash is returned there.
2007-02-25 07:37:54 · answer #3 · answered by PK LAMBA 6 · 0⤊ 0⤋