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Arisa [49]
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?
Mathematics
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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