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kifflom [539]
1 year ago
14

Look at the scenario money creation. how much of the $1,000 deposit is the bank required to keep in reserves?

Business
1 answer:
madam [21]1 year ago
3 0

The quantity of the $1,000 deposit is the bank required to keep in reserves is 20%.

<h3>What is a reserve deposit?</h3>

A reservable deposit would be any bank deposit subject to bank reserves established by the Federal Reserve Bank of the United States.

Some key features of reserve deposit are-

  • Through the mechanism of fractional reserve banking, such a deposit could be used in part as a loan.
  • The remaining portion, as established by the Fed's bank reserves, must be kept by bank & made available for prompt withdrawal upon request.
  • A reservable bank is a banks deposit that is subject to the reserve requirement guidelines of the Federal Reserve.
  • Transaction (checking) savings account, savings accounts, as well as non-personal time deposits are all examples of reservable deposits.
  • Sweep accounts, often known as money market funds, is non-reservable deposit account that generate a greater rate of interest than reservable deposit accounts.

To know more about the reservable deposit, here

brainly.com/question/13758092

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A company purchased a commercial dishwasher by paying cash of $5,000. The dishwasher's fair value on the date of the purchase wa
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<h2>plz bhai mera answer ko brainliest kar do..</h2>
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