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Elza [17]
3 years ago
10

If reserves increase by $12 billion, what is the difference in the resulting change in checkable deposits when the required rese

rve ratio is 10 percent compared to when it is 8 percent
Business
1 answer:
Gre4nikov [31]3 years ago
6 0

Answer:

$30 billion

Explanation:

Calculation to determine the difference in the resulting change in checkable deposit

Using this formula

Difference in checkable deposit=Increase in reserve/(1* Reserve ratio 8%)-Increase in reserve/(1* Reserve ratio 10%)

Let plug in the formula

Difference in checkable deposit=$12 billion/(1*8%)-$12 billion/(1*10%)

Difference in checkable deposit=$12 billion/0.08-$12 billion/0.10

Difference in checkable deposit=$150 billion-$120 billion

Difference in checkable deposit=$30 billion

Therefore the difference in the resulting change in checkable deposit is $30 billion

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<h3>What does Texas Constitution require a balanced budget?</h3>
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