Construction Loanz | California & Nationwide Construction Loans

Mar/10

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California construction home loan

http://www.lendinguniverse.com/ california construction home loan We consider demand deposits to be money because they can be used to pay for goods and services by means of checks. Commercial banks have other deposit liabilities called time deposits or savings deposits which differ from demand deposits only in the fact that they cannot be transferred by check. If you have a savings account and want to buy something, you have to present your pass book at your bank, withdraw currency, and then pay cash for what you buy. You cannot pay for anything with a savings deposit. The same thing holds true for deposits in savings banks and savingsand-loan shares. Nonetheless, time and savings deposits in commercial banks, deposits in mutual savings banks, and savings-and-loan shares are regarded by their holders as almost the same thing as money, because they can be quickly and cheaply changed for money. The claims just mentioned, along with some others such as short-term U.S. Treasury securities and U.S. Savings Bonds, are frequently called “near monies” or “money substitutes.” Through regulation of commercial banks, the Federal Reserve System indirectly controls the amount of demand deposits. Thus the amount of money in existence is controlled by a public agency. It was not always this way. Our present monetary system reflects 300 years of experience with a variety of arrangements. You will get a clearer understanding of our present system if you think of it as the product of a gradual evolution based on that (frequently unhappy) experience. In the remainder of this chapter we will review the major steps in that evolutionary process.
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