No lie, I had an irrational fear that authorities would be summoned the first time I tried to deposit a large check (from consulting). I asked for a private conference with a banker so that I could explain the circumstances. Whereupon we had a very classic conversation:https://twitter.com/cperciva/status/1036423661673009153 …
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Some deposits are fixed-term, like CDs. The money might be (theoretically, for the case of CDs) locked up for 6 months or a year. Others are "demand" deposits. You get the money ~immediately "on demand", at your own option, w/o paying a penalty.
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Banks have to carefully manage their mix of funding sources such that the ratio of demand deposits is reasonable and such that the diversity of sources of demand deposits is spread out, such that a single event doesn't cause them to have a liquidity crisis.
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Sorry just reread it and it made sense to me. Thanks for taking the time to explain it
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No worries! Demystifying finance for geeks is basically a material percentage of my job.
End of conversation
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