firsttimebuyer
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Hi everyone,
Need some help here. Not sure if this is the right place to post all these questions, but I recently have been reading up a lot of economic books and have some questions.
Not doing homework here, hahaha as already in my 30s but more on personal knowledge.
Qn 1:MAS is our central bank but our currency acts more like a currency board, if I am not wrong, with a basket of reserve currencies. But does MAS also acts as a 'lender of last resort' , in the sense that it lends money to banks with liquidity problems, but against collateral?
Qn 2: let's say one day, there is a bank run on a bank and depositors are rushing to withdraw their deposits on physical cash. The bank has no issues meeting their deposit obligations but just don't have enough physical banknotes. Can it request Singapore currency House to fulfil these need or does it still need to 'borrow' these banknotes from MAS?
Need some help here. Not sure if this is the right place to post all these questions, but I recently have been reading up a lot of economic books and have some questions.
Not doing homework here, hahaha as already in my 30s but more on personal knowledge.
Qn 1:MAS is our central bank but our currency acts more like a currency board, if I am not wrong, with a basket of reserve currencies. But does MAS also acts as a 'lender of last resort' , in the sense that it lends money to banks with liquidity problems, but against collateral?
Qn 2: let's say one day, there is a bank run on a bank and depositors are rushing to withdraw their deposits on physical cash. The bank has no issues meeting their deposit obligations but just don't have enough physical banknotes. Can it request Singapore currency House to fulfil these need or does it still need to 'borrow' these banknotes from MAS?
