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3 years ago

13

If the Federal Reserve decreases the reserve rate from 4% to 2%, how does this affect the amount of money that would result beca

use of fractional-reserve banking from an initial deposit into a bank of $55,000?

1 answer:

Snezhnost [94]3 years ago

5 0

55,000÷0.04
=1,375,000

55,000÷0.02
=2,750,000

2,750,000−1,375,000
=1,375,000 increase

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