category: cocktail party tips

What is the Required Reserve Ratio?

The Required Reserve Ratio (RRR)

This is a portion (which is usually described as a percentage) of a depositor’s balances that must be held by the bank in cash.

Let’s say the required reserve ratio was 10% in my  country. I went into the bank with 100 dollars to deposit. The bank will take those dollars but must hold 10 dollars back in cash. The bank cannot lend those 10 dollars out. That is determined by the RRR.

Changing the RRR is used governments and central banks to either increase or decrease bank lending. This typically has the effect of kick starting or slowing down an economy respectively.

Note: Since China reduced their Required Reserve Ratio last week (2.20.12), the Shanghai Index (their stock market) has rallied (moved up in price) every single day for a week.

 

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Holiday Party: Small Talk Tips

Image curtsey of Cup of Joe

 

1) Introduce Yourself

Don’t just say your name. Give the person something they can react to—it need not be complicated.

Do not say: Hello, my name is Alex.

Try this: Hello, my name is Alex. I work in this building on the 8th floor.

 If you don’t do this, statistics say that 90% of the conversations will turn to weather. This is boring unless you are in the middle of a Category 5 Hurricane.

 

2) Ask Open Ended Questions

Avoid any question that could be answered in one word unless you are prepared with an open-ended follow up question.

 

3) Make Sure Your Conversation is a Volley

You need to make sure you say something, the other person reacts, you react to them, they react to you and so on.

If this hard, pretend you are the gracious host of the party and it is your job to make conversation flow.

 

4) Listen

 This is critical. Even if the conversation turns to their grandmother’s living room furniture, never look around the room while they’re talking.

 

Anything to Avoid?

Gossip: resist the urge. While this can make for easier conversation, studies point to the fact that office gossips are not trusted for positions of leadership.

 

If You Just Need a Good Joke

Check out American Public Radio’s Dinner Party Download. Every show starts with a short joke you can use!

And some good vintage office holiday pictures here.

 

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