Due to the multiplier effect, what is the maximum amount That There Bank could loan out?

Social Studies

2 answers:

Furkat [3]3 years ago

8 0

Uhhh... $34.000 if I’m wrong just comment me saying REJECTED

sleet_krkn [62]3 years ago

5 0

Answer:

The maximum amount a bank can lend depends on the reserve ratio.

Explanation:

The money multiplier effect is the process that allows banks to multiply money from an initial amount of money.

<em>Imagine that John makes a deposit of $ 1,000 in a bank, if the cash ratio is 10%, the bank will have to save 10% of that $ 1,000 ($ 100) and can lend $ 900 of that money to Mary. If Mary deposits it again in the bank, the bank saves 10% of the $ 900 deposited (90 dollars) and lends the remaining $ 810 to Norman, so on in a decreasing infinite series.</em>

<u>This is because banks are only required to keep a minimum level of money in their reserves.</u> This minimum is called the reserve ratio and is determined by each central bank.

You might be interested in

What language did the Aztecs speak? Thanks! :)

PilotLPTM [1.2K]

Hi there!

Nahuatl was the language the Aztecs spoke. Most of the Nahuatl speakers also spoke another language, which was Spanish, but some didn't.

Hope this helps!

3 0

3 years ago

Read 2 more answers

Fill in the blanks.

MrRissso [65]

1. im sry but I rlly dont know-

2.Magistrate

4 0

3 years ago

For research that does not entail a demonstration project conducted by or subject to the approval of state or local government o

Troyanec [42]

Answer:

The answer is below

Explanation:

IRB which stands for International Review Board is a form of committees that comprise or more members with different expertise or background and diversity whose responsibility includes performing reviews and authorizing human subjects study activities on behalf of various institutions.

Hence, in this case, IRB may waive or alter the regulatory elements of informed consent if it finds and documents a number of items, including the following amongst others:

1. Performing preliminary and continuing review of research study

2. Selecting which projects require a confirmation from other sources aside from the investigator that no material modifications have ensued since prior IRB review

3. Documenting results and activities to the investigator and the institution;

4. Defining which projects need review more often than yearly;

5 0

3 years ago

After interviewing Estella, Dr. Albert determined that she has experienced one manic episode, along with substantial psychologic

sladkih [1.3K]

A diagnosis of Bipolar Disorder will be assigned since the patient has experienced a manic episode with substantial psychological distress and great impairment in daily functioning.

<h3>What is a Bipolar Disorder?</h3>

It is a form of mental illness that is associated with condition of extreme mood swings that include emotional highs (mania or hypomania) and lows (depression).

Therefore, as the patient experienced a manic episode, then, she will be diagonised with Bipolar Disorder.