The cash reserve ratio (reserve requirement) is one of the parameters of monetary policy used by central banks to control the money market. The manipulation can be done in two ways. If it increases, banks will have to save more money, and therefore there will be less in circulation. If it reduces, banks can lend more. According to monetarists, most employers will take a loan to make an investment, thus serves as a policy of economic expansion.

In fact, rarely does the central banks of developed countries make the cash reserve ratio or reserve requirement changes because such changes involve abrupt changes away from the interests of central banks based on SVG Forex License.

Yes it is very important how the cash reserve ratio or reserve requirement impacts the money market. Before you see a small example, we define another ratio : the ratio of cash held by the public ( e). This coefficient is equal to: e = EMP / A. EMP being the amount of money currency that people have in their possession and D the total bank deposits delivered by savers in banks. In the economy, it is close to 10 %.

This effect is known as the money multiplier, and is the reason for scrutiny by the Central Bank on the cash reserve ratio or reserve requirement, which is a key parameter to determine the amount of money, inflation and borrowing.

Gross income is income that a company receives from its core business, usually from the sale of goods or services to consumers. In many countries, the term gross income is synonymous with revolution. Some companies may receive gross from interest, dividends or royalties that they pay other companies.

The sum of the gross may refer to the entire income for a certain period of time in a particular currency, for example, last year, the company X received gross income of 25 million dollar.

For non-profit organizations, the annual gross can be called the gross income from the fund. This funding includes donations from individuals or companies, funding from government agencies, income from activities permitted by the charter of a non-profit organization.

The income from the shares are related to the involvement of donations, membership fees or income placement of the share capital. The term nominal value refers to value for something whose value is estimated using contemporary currency and SVG Forex License. Thus, when considering the variations between two dates with a nominal value, these variations are disturbed by the inflation that has occurred between these two dates, that is, the decrease in the value of the currency.