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3 years ago

14

if the federal reserve deceases the reserve rate from 5% to 2%, how does this affect the amount of money that would result becau

se of fractional reserve banking from an initial deposit into a bank of 25,000

1 answer:

muminat3 years ago

5 0

25,000÷0.05
=500,000

25,000÷0.02
=1,250,000
increased by
1,250,000−500,000
=750,000

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