cash drain

cash drain

a constraint on the expansion of the MONEY SUPPLY through BANK DEPOSIT CREATION, caused by individuals retaining larger amounts of cash than usual. This means that not all of the increase in cash calculated by using the reciprocal of the RESERVE ASSET RATIO is passed on from the public back into the banking system. For example, a new deposit of £100 is made into the banking system. Assuming a 10% reserve asset ratio, the average fraction of money held in cash form is one-tenth and the reciprocal 10. Thus ultimately a £1,000 increase in money supply is theoretically possible. If the public's demand for cash grows, however, then the increase in the money supply will not be 10 times the initial deposit, but something less.
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Unfortunately, it will now take a long time and will be a further cash drain on the long suffering council tax payers.
It's a svelte coupe whose elegantly sculpted lines might hint at high running costs but really represents no more of a cash drain than many a plainer machine.
Because of stagnant output, project delays and government-ordered fuel subsidies, Petrobras has seen its debt rise and cash drain away and is now the world's most indebted and least profitable major oil company, according to Thomson Reuters data.
It was a mammoth cash drain, and in the dark times of 2008-09, cash was what was required.
While tax deductible, pensions are an operating cash drain.
But it has warned in court filings that it will be "irreparably harmed" unless the compensation system is reformed, saying the cash drain could put its dividend at risk and make it vulnerable to a takeover.
Its capital controls are a first for the eurozone, introduced in an effort to prevent a cash drain.
The company is addressing its working capital management and Fitch believes there is scope to substantially cut the cash drain through improved inventory and receivables focus.
Department of Energy loan could push the total cash drain up to $235 million for the quarter.
Ahmad added, "It won't derive any monetary strength, the costs of the marketing exercises alone will be a cash drain, and unless there is some hidden agenda behind the scenes to test the water ahead of a pan-Arab merger, it's difficult to see this pact being there in the long term.
Ahmad, meanwhile, begs to differ, as he said: "It won't derive any monetary strength, the costs of the marketing exercises alone will be a cash drain, and unless there is some hidden agenda behind the scenes to test the water ahead of a pan-Arab merger, it's difficult to see this pact being there in the long term.