Banks can lend any amount to each other. The simple concept of the money multiplier is that banks will lend as much to each other as possible in an attempt to make as much of an interest premium as possible. When banks do lend to each other in this manner, the resulting creation of money places the money multiplier at the highest possible value it can have for a given reserve ratio. When banks lend conservatively, the rate of increase of money is reduced at a greater rate then the reserve ratio allows for.

The currency-to-deposit ratio must represent the amount of physical currency that exists versus the amount of money that exists as bank deposits. We do know that the more money that banks have, the more money banks can create through loans. Thus, we can conclude that the more currency is not in banks, the less money they can create. The less loans banks can create, the smaller the total money supply must be. This is because the growth of the money supply is based on the bulk of the money supply being located in banks. In terms of total deposits, an increase in the currency-to-deposit ratio must represent either an increase in currency or a decrease in deposits. Thus, this increase either represents less total deposits or no change in total deposits with an increase in currency.

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Well one more product that is currently ngetrend mutual funds. Mutual funds have the advantage of flexibility in terms can be cashed at any time, have a variety of risk level course with a variety of return is also tax free!
Mutual fund or mutual fund is basically a financial product that applies the principles of gado-gado. It means the contents of the mutual funds could have been different. In other words, mutual funds are the simplest way to spread risk (diversify) stock mutual fund portfolio may consist eg extract 30 kinds of diverse stocks so that if the price of ABC stock crash, the stakes are not so tasteless as any other mutual fund may rise. Money market mutual funds

Instrument contains a bank certificate of deposits and Indonesia. This kind of mutual funds have no risk of losing principal because it is so just deposits and SBI alone. These mutual funds typically offer rates of return are slightly smaller than the deposits but has the flexibility of the withdrawals. Suitable for investors who are reluctant to bear the risks but want to get flexibility.
Fixed Income Mutual Fund contains financial instumen with a very low risk as government bonds, bonds mixed with korporate and SBI. Given level of expected return is better than a bank. But should note that fixed-income mutual funds still have a risk of capital loss is very low even considering the elements that are volatile bonds reversed by the bank savings interest. Mutual funds are suitable for low-moderate risk investors. (investors are willing to accept low to medium risk). Stock mutual funds contain several types of stocks. Usually a stock mutual fund contains at least 20 different stocks. These mutual funds are volatile or fluctuating significantly. However, within 3 to 5 years even more mutual funds typically offer a yield just under or very good interest. In fact there was a time to reach 60% even more. This type of mutual fund is not suitable for those people who suffer a heart attack, those people who easily worried or anti-risk investors. But this mutual good if you want to accept higher risks, or we want to save money in the long run. Mixed mutual funds (Managed Fund) Mutual funds are mixing stocks and bonds. 30-50% is usually allocated in the form of separation in the form of bonds remaining. Mutual funds are good for people who do not want to take high risks but still hoping for good returns back from the funds saved in other words high medium investors will love this instrument.

Well, for it was a necessary preparation for any small and simple. That does not mean we have to fear and much to think that eventually our time and energy being drained just to think about how to begin and make preparation create a business. This is more to how to make business or our business will be able to walk and run well, strong and full of strategy. Especially seeing the current competition, a business expected to compete among the tens of thousands and even competitors.
For that the following are simple tips that seemed worth noting in starting a business;

Tube as much of your money before you start a business.
Too often, in creating a new business, people always use the loan money, whether from friends, banks or the Small Business Administration (SBA) a financial credit institution for small businesses. They hope and think that they will be able to repay their loans immediately from the profit they make from the business.

They really do not realize that to benefit from a newly constructed business takes in terms of months or even years. And when the lender knows that the business does not deliver as expected profit, the lender may be giving loans or refuse to lend again in the future. Finally a place many of them who then gave a guarantee the house or use their credit cards to pay off the loan.

So the best way to create a business is to save as much money as possible for purposes of investment, including your living expenses for one or two first year. To anticipate if your business is not profitable in the first year or two.

Start with It Is
Think of the small. Do not rent a place in advance if you can still do it in his own place and do not hire employees if you have too much need.

People who start businesses with simple, like to start by using the garage, small space unused or even the trash / warehouse, and making the goods or services of their first with more sweat than money, struggling. They have a luxury of making a mistake that was inevitable in a small scale. And it must be because they’re just beginning, they are not entangled in debt, they usually can learn from mistakes and can get out of the problems they face.

Protect Your Personal Assets.
When you create a personal business, you are usually personally responsible for all decisions and debt from the business. This includes corporate lending, taxes, money and goods suppliers who rented the place and responsibility, other responsibilities that you’re responsible for the company from lawsuits. If you do not protect yourself, a creditor could walk away with carrying away your personal assets, such as car and your house, to pay your debts.

Actually, you can protect yourself before the law by purchasing liability insurance company, but this will not help you. If you want to owe large amounts, consider making a company or a limited company.

Understand How-and if-you’ll Make Profit
You can create one short sentence to express how the business plan that you can make a big profit. For starters, you have to know how much that will cost you out: how much you will spend the money to buy equipment, pay rent, pay employees and closing costs lainnnya unexpected. So you can describe exactly how much you have to sell each month, to get the rupiah, to cover all costs and make profits on the other side. The amount is all you need to make a “break-even analysis.” Or the analysis of profit and return on investment.

Creating a business plan, no matter how much
After knowing the amount of profits and make a break-even analysis is the first step in creating a business plan. For most small companies, a key part of a business plan is to break-even analysis, profit and loss estimates, and projected cash flow.

Projecting cash flow is key and that steps to find out your company’s profit or loss: although you can run the business and manjual many products, if you can not turnover time within 90-180 days, it means that your business can not any longer betahan unless you have made planning for anticipated.

Creating a business plan also allows you to determine your initial funds to start the project (how much money you need for your store) and what marketing strategies you will use (ie the way how you touch your customers to sell). If you are not able to make a number of steps on paper work, then you also can not to apply in the field.

Get and Keep the value of your business competition
Building a competitive value in your business is a very important thing is to reach a long-term success. Some ways to create value by way of competition is well recognized by your opponent or your competitors, create a product that is difficult to imitate, produce and distribute your product more efficiently, choosing the right location, or by providing the best service and satisfactory .

And one more thing you should notice in this competition is to protect the secrets of your trade-secret information that gives you the benefits of competition in the market. Examples of trade secrets include your customer data, survey methods, marketing strategies and production techniques. To protect your trade secrets under the protection of the law, steps that you can do to maintain the confidentiality of information. These steps is to provide the label “confidential” documents, using passwords to memprotek any information on the computer, using the agreement is closed and restrict employee access with a good reason to know your trade secrets.

And another way to maintain the competitiveness of business is to act quickly to all the bad news. Next time you see that your business needs to advertise, then do it immediately. Which can contain about your office move to other locations, the introduction of new products or services, or make a breakthrough to reach the customer.

Make all agreements in writing
Any law that you specify whether any contracts or agreements must be made in writing:
Even though not legally required, is wise if you make everything in writing, because oral agreements are difficult if not impossible to be proved. Familiarize yourself to always put all forms of agreements, transactions and contracts in writing.

Find and Keep Good Employees
You must memcari and keep employees really well, not just employees who are capable of competence alone. Employees who are highly competent and truly enthusiastic about a minimum of two or even three times more valuable than a skilled person in general.
To create balance and happiness in the working atmosphere, is very important not only your employees who believe that their treatment is fair, but also that your business is worthy of respect. Because employees who liked his work will give the best for you both at work or not. And consumers will be pleased to recommend to the people closest to them.

Billing and pay all your taxes on time
In the current era, where a reputation for keeping a promise is a very valuable asset, a good strategy is either to pay your bills up front or pay them at the beginning.