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vitfil [10]
2 years ago
9

If the reserve requirement is 25%, a new deposit of $1,000 leads to a potential increase in the money supply of

Business
1 answer:
Nezavi [6.7K]2 years ago
5 0

Based on the information given regarding the reserve requirements, there'll be an increase in the money supply by $4000.

A reserve requirement simply means a regulation by the Central Bank where commercial banks set a minimum amount that must be held in liquid assets.

Since the reserve requirement is 25%, a new deposit of $1,000 leads to a potential will lead to an increase in the money supply of $4000. This was calculated thus:

= $1000 / 25%

= $1000 / 0.25

= $4000

Learn more about money on:

brainly.com/question/24556197

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3 years ago
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Derek has liquid assets of $4,450 and he saves $615 a month. His current liabilities are equal to $1,750 and monthly credit paym
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Answer:

7.20 %

Explanation:

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7 0
3 years ago
Compare the world population index for 1960 to the world population index for 2000. Then express the world population in 2000 as
Ahat [919]

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c. 200%.

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7 0
3 years ago
1. Which resource management task determines the type, quantity, receiving location, and users of resources? A. Track and Report
Rasek [7]

Answer:

C. Identify Requirements

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8 0
4 years ago
A firm sells a product in a purely competitive market. The marginal cost of the product at the current output level of 800 units
astraxan [27]

Answer:

The correct answer is option

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3 years ago
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