Yes, Virginia, There Are No Reserve Requirements (PART 2/2) [View article]
Dear Johnc222 -
I am not arguing for the req's on CD's, I am just simply pointing out that they do not exist right now but that they did earlier in time.
As you stated, most CD's typically can be withdrawn with a penalty, so "locked in" is not a good phrase in my humble opinion.
On Aug 12 10:08 AM Johnc222 wrote:
> why is the writer of this article arguing, for reserves on CD's..? > When CD are lock in by time restrictions and can not be withdrawn > on a whim. > > They can but penalty usually prevents that. CD are an asset to banks > capital and not liabilities.
Yes, Virginia, There Are No Reserve Requirements (PART 2/2) [View article]
I am not arguing for the req's on CD's, I am just simply pointing out that they do not exist right now but that they did earlier in time.
As you stated, most CD's typically can be withdrawn with a penalty, so "locked in" is not a good phrase in my humble opinion.
On Aug 12 10:08 AM Johnc222 wrote:
> why is the writer of this article arguing, for reserves on CD's..?
> When CD are lock in by time restrictions and can not be withdrawn
> on a whim.
>
> They can but penalty usually prevents that. CD are an asset to banks
> capital and not liabilities.