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andreev551 [17]
3 years ago
8

If the federal reserve decreases the reserve rate from 10% to 80% how does this affect the amount of money that would result bec

ause a fractional reserve banking from an initial deposit into a bank of $40,000
Mathematics
1 answer:
OLga [1]3 years ago
3 0

Answer:

100,000

Step-by-step explanation:

Given :

Initial deposit = 40000

Amount of money = Initial deposit / Reserve rate

When reserve rate = 10% = 0.1

Amount of money = 40000 / 0.1 = 400,000

When reserve rate = 8% = 0.08

Amount of money = 40000 / 0.08 = 500,000

Difference = 500,000 - 400,000 = 100,000

Amount of money will increase by 100,000

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Greg will need $2.08 more money to buy 12 gallons of gas.

<h3>Further explanation</h3>

A gallon of gas costs $4.34

Greg puts 12 gallon of gas

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To multiply the decimal it's just the same way as the whole number multiplication, except for the placement of the decimal point in the answer. For the example

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By doing the same process as the whole number multiplication we got the answer is 52.08, but don't forget to add the decimal point/decimal place. The first factor has 2 decimal place, the second factor has 0 decimal place, so the answer will have two decimal place (2+0 = 2), by adding the decimal place.

The next step , 12 gallon of gas cost $52.08, if he has $50 so it cost more than the money he has, We are going to do a subtraction:

$52.08

<u>$50.00 </u>-   ⇒ <em>we put zero so we can the borrowing (regrouping)</em>

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To subtract a decimal number, we need to line up the decimal point, add trailing zero as a placeholder and then do the subtraction

<h3>Learn more</h3>

Total spend brainly.com/question/12203917

Decimal multiplication brainly.com/question/2124592

Decimal multiplication brainly.com/question/1254534

Keywords: multiplication, decimal multiplication, two digits number additional, additional, subtraction decimal, regrouping

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