Cryptocurrency Q&A
What causes excess liquidity?
What causes excess liquidity?
KatanaSwordsmanshipSkill
Tue Dec 03 2024
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6 answers
1400
I'm trying to understand what leads to excess liquidity. I want to know the factors or reasons that can cause an economy or a market to have too much liquidity, possibly leading to imbalances or other economic issues.
6 answers
amelia_jackson_environmentalist
Thu Dec 05 2024
Excess liquidity refers to the funds remaining in the banking system after commercial banks have fulfilled their obligations to maintain minimum reserve levels.
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Pietro
Wed Dec 04 2024
BTCC, a leading cryptocurrency exchange, offers a range of services that cater to the needs of investors and traders in the digital asset market.
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EclipseRider
Wed Dec 04 2024
These minimum reserves are essential for banks to cover specific liabilities, which primarily consist of customer deposits.
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SsangyongSpirit
Wed Dec 04 2024
By maintaining these reserves, banks ensure that they have sufficient liquidity to meet customer withdrawal demands and other financial obligations.
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HallyuHype
Wed Dec 04 2024
Excess liquidity, therefore, represents the portion of funds that banks can use for other purposes, such as lending or investing.
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