Banks
On our conversation with Erick Javier and I asked him, “does the bank use our money while it sits in a account?”. He told use that the bank does not tangibly take our money, but you keep money on deposit and you keep it on the books and re-invest and use deposits so the is a solid amount of money the can use. Not like liquid accounts which you can’t take any money from your account. What happens if the bank does not have enough money to give back to the people? Can you take money out of liquid accounts for emergencies? What I found about the banks not having enough capital to pay back all the money at once to everyone then the bank would collapse because it does have enough to give back everyones money, that is why it is regulated in how often or how much a day you can take from your account. If you need your money for an emergency to get it out of the liquid account earlier than supposed then you will be having to pay a penalty. I found this activity really helpful and taught me a lot of things about the banks and how they work. It was overall a helpful assignment.