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Travka [436]
2 years ago
11

Reagan deposited $1,000 into Regions Bank. If the Reserve Requirement is 10%, how much “new” money has been created due to Reaga

n’s deposit?
Government please help me
German
1 answer:
Strike441 [17]2 years ago
8 0

According to the information, it can be inferred that the new money created is equivalent to $9,000.

<h3>How to calculate the money that has been created during Reagan's deposit?</h3>

To calculate the new money that has been created during the Reagan deposit we must perform the following mathematical procedure:

We multiply the deposit amount by 0.1

  • 1,000 × 0.1 = 100

We subtract the result from the amount of money on the deposit.

  • 1,000 - 100 = 900

We calculate the money multiplier.

  • 1 ÷ 0.1 = 10

Finally, we multiply the money value by the multiplier value.

  • 900 × 10 = 9,000

Based on the above, $9,000 is to be created with Reagan's deposit.

Learn more about bank deposit in: brainly.com/question/2507231

#SPJ1

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