:salam2:
Suppose if we put our money into a bank savings account, will we receive a pre-fixed stated interest rate without losing our actual money saved in account? How it is calculated?
Re: How to Calculate a Market Risk Premium
Isn't the calculation based on the following:
1) term or period
2) amt of money
3) prevailing interest rates
4) how the money you deposited is lent - to high risk projectsetc
I am clueless - just asking questions of our shy economists chartered accountants and other experts.
Re: How to Calculate a Market Risk Premium
lets say
1- terms of period is 20 years
2- amt of meny is 125,000.00 $
3- 2.5%
4- In case if the bank is bankrupputed.
Re: How to Calculate a Market Risk Premium
Re 4 I meant how the bank inturn lends the money you deposited if bank lends to folks with low credit bank may charger higher interest and then pay you high interest. But there is risk of loss of monry.
You are asking what if bank goes bankrupt. I believe io to I think 200k $ your money is Fdic insured.
I am way in over my head on this topic. Hopefully someone with a clue steps in and undoes any unintended damage my half baked posts.
Re: How to Calculate a Market Risk Premium
Southie dear, frankly speaking my knowledge about banking, economy, finance, equity, marketing is zero. I just opened this thread without any reason. hope u don't mind :)
Just forget about bankrupcy. Let say I deposited some amt in bank. Either bank use it or lends the mony other folks, that's bank problem not mine. So is my money is in save hand? Maybe or maybe not ... depends if i signed for profit & loss account or only for profit account.
If account is profit & loss than the return i.e. interest rates will be higher than 2.5% but i'll risk my money.
If account is profit than as u said my money is insured but % is lower.
Would u like to add something in this thread? :@:
Re: How to Calculate a Market Risk Premium
title of the thread has nothing to do with the content of the first post.
Re: How to Calculate a Market Risk Premium
Oky noted :k:
Wanna join this discussion?
Re: How to Calculate a Market Risk Premium
title of the thread has nothing to do with the content of the first post.
Isn't there some saying - look beyond the title and look at the contents?
Re: How to Calculate a Market Risk Premium
sorry. but its pointless really.
just so you know, banks don't go bakrupt overnight. there are laws, and mechanisms in place by the regulator to forecast/monitor and take corrective action if the bank is moving towards bankruptcy..regardless... your money will be safe. although there might be a delay in you receiving your money.
Re: How to Calculate a Market Risk Premium
PM in the US there is a cap of $200 k I think that is back stopped by the government. The rest is not safe. Bankruptcy proceedings - depoiters bondholders would have to get into line. Do you know who is senior between these two categories?
Re: How to Calculate a Market Risk Premium
don't know about US.....and this lethal dude is neither in america nor pakistan.
Re: How to Calculate a Market Risk Premium
Ok - so which country were you referring to when you said money is safe. I was trying to convey up to a limit it is safe. Probably true anywhere in the world?
Just did some research - lethal is in KOB - wherever that is!
Re: How to Calculate a Market Risk Premium
Kingdom of Bahrain.