Respuesta :
A decrease in bank deposits that is matched by an increase in currency in circulation: liquidity in banking.
If there is too much money in circulation, both in terms of cash and credit, then the value of legal tender decreases. Multiple factors can influence the amount of cash in circulation: Economic factors such as GDP growth, inflation or an economic crisis. Things or people that store or hold cash.
Liquidity is a measure of the cash and other assets banks have available to quickly pay bills and meet short-term business and financial obligations. Capital is a measure of the resources banks have to absorb losses.
Liquidity can be caused by a combination of different factors, including having a shortage of money in circulation, which increases the value of that money and, in turn, reduces prices; having more goods produced than there is demand for, which means businesses must decrease their prices to get people to buy those .
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