Banks should receive billions of dollars in assistance from their government during financial Cris I that was in large part their fault

Financial institutions ought to be provided with
funds
by the
authority
during an economic crisis,I totally agree with
this
as they contribute immensely to the maintenance of
cash
and
also
ensure adequate distribution of
treasury
as well. My
first
point is the contribution to
cash
maintenance by the financial institution,the
treasury
ensures that there is not too much circulation of
cash
and
hence
it preserves the value of money because,when there is excess
cash
in the public it will lead to the depreciation of
cash
value.
Furthermore
,as they are working to limit excess
cash
,they are concerned with the level of
funds
in circulation being too low thereby resulting in a shortage. Another point is that the
treasury
is in charge of the adequate distribution of capital.Here the financial institution makes sure that the
funds
being distributed are in the appropriate form and that they should be sent where it is supposed to go,
for example
:if the
authority
should invest in
treasury
during a financial breakdown they will preserve it and give it back to the
authority
in form of loan
also
with interest thereby generating more profit that can be used by the
authority
at the same time giving back to the administration what was given since the financial institution
also
abide by the laid down rules of the government,it will be easier to access what was invested on. In conclusion,I totally agree that the benefit of financial institutions can be utilized by the
authority
through investment especially during crises mostly economic since they can help maintain
cash
and as well ensure proper distribution of
funds
.
Submitted by Ugochukwufaith25  on

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